Barclays strategist: Profitability of US large technology companies will remain resilient.

Barclays strategist said that despite the impact of fluctuations in the Iran-related situation, profit expectations before the upcoming US earnings season remain stable, with large-cap tech stocks showing particular strength. The team led by Vinoo Krishnan wrote that earnings expectations per share for S&P 500 components have remained stable for six months and have not been disrupted by recent market volatility triggered by the Iran conflict. They believe that the capital expenditure supercycle remains the main trend in the market, with large-cap tech stocks continuing to maintain a leading position in capital expenditure due to the widespread adoption of artificial intelligence and continued strong demand for cloud services. In addition, the strategist pointed out that after a recent sector valuation adjustment, large-cap tech stocks have become attractive, with the market expecting significant margin expansion and strong profit growth, providing positive support.