WS #16551
Quanta Services (PWR) reported a blowout Q3 with EPS beating estimates by 20%, driven by surging power demand for AI infrastructure, validating the physical build-out thesis. In contrast, Alphabet dropped 13% on an earnings miss and AI capex cut, though a $310M dark pool buy suggests institutional interest at lower levels. This divergence highlights a split in the tech sector: infrastructure plays are thriving while software/search giants face margin pressure and demand uncertainty.
Tech Earnings Divergence
Quanta Services (PWR) reported a blowout Q3 with EPS beating estimates by 20%, driven by surging power demand for AI infrastructure, validating the physical build-out thesis. In contrast, Alphabet dropped 13% on an earnings miss and AI capex cut, though a $310M dark pool buy suggests institutional interest at lower levels. This divergence highlights a split in the tech sector: infrastructure plays are thriving while software/search giants face margin pressure and demand uncertainty.