HSBC's Kettner Sees 20% Hyperscaler Slump Reversing in Summer Melt-Up
Updated
Updated · Bloomberg · Jul 6
HSBC's Kettner Sees 20% Hyperscaler Slump Reversing in Summer Melt-Up
1 articles · Updated · Bloomberg · Jul 6
Summary
July and August could bring a “summer melt-up,” Max Kettner said, arguing investors are rotating back into hyperscalers after a sharp selloff.
A roughly 20% drop in May and June pushed the group too far into bear-market territory, he said, creating room for a rebound.
Kettner tied that shift to confidence that hyperscalers can still generate strong profits while spending hundreds of billions of dollars on AI infrastructure.
The call suggests AI-linked megacaps are regaining market favor after recent skepticism over whether heavy capital spending would erode returns.