With markets reacting to developments in the Middle East and oil prices moving higher, we wanted to briefly share our perspective on what is happening and how we are thinking about the situation.

Markets are not pricing that reality. Investors still treat the AI build-out as marginal cloud spend or another overhyped software cycle. They debate whether Big Tech is “exhausting its available capital” or whether capex “must mean revert,” as if infrastructure were optional and competition courteous. They are using valuation models from the wrong century for the wrong game.