High Bar for Tech Earnings This Week: Covley

• Tech companies face a high bar to justify AI capex, with potential for deceleration in spending impacting the AI story.
• The AI industry is still in its infancy, leading to more idiosyncratic stock behavior as investors identify key players.
• Geopolitical events like the Iran conflict and rising oil prices are seen as a 'tax on economic activity' but not causing entrenched inflation due to weak hiring.

Manning & Napier Senior Investment Analyst Kelly Covley discusses the high bar for tech earnings this week, especially concerning AI capex spending. She views geopolitical events and rising oil prices as a 'tax on economic activity' rather than a driver of entrenched inflation, while AI continues to boost productivity. The market is expected to increasingly differentiate winners and losers in the AI space.