CMB International released a report stating that the first quarter performance of overseas leading TMT companies showed strong demand for AI computing power, and several companies raised their capital expenditure guidelines, leading to short-term pressure on free cash flow. The bank believes that AI investment has a controllable impact on the profitability of leading technology companies, and the operating profit growth rate is expected to remain above 20% in the 2027/2028 fiscal year. Free cash flow is expected to rebound from the 2028 fiscal year onwards. The bank recommends Microsoft, Google, Amazon, Palo Alto Networks, and Meta.
