SocGen's Kabra: Semi Trade's 'YoYo' Cyclicality Supports AI Users--Not Builders

Société Générale CIB Chief US Equity Strategist Manish Kabra tells Bloomberg's Anna Edwards and Tom Mackenzie he will focus on companies using AI rather than building AI in 2027, pointing to the cyclicality of the semiconductor trade. "Semis historically are always a yo-yo index. It goes up a lot. It comes down a lot," he says on The Opening Trade. "The conviction to adopt AI is feeding into hyperscalers. It's feeding into frontier labs. And that's what backwards feeds into the AI capex cycle. I think the feedback from the S&P 500 outside the tech sector is still we want to adopt AI and not ignore it."