Goldman Sees Hyperscaler Spending as Continued Boost for Europe Stocks

• Massive ramp-up in hyperscaler spending is expected to trickle down, boosting earnings growth in other sectors and supporting infrastructure build-out.
• Europe has performed well, matching the S&P 500 in the first half of the year, and maintains a valuation advantage even when sector-adjusted.
• Profit growth will be the primary driver for equity markets, with Europe's value-oriented sectors generating good cash flows and shareholder returns, leading to moderate index gains.

Peter Oppenheimer of Goldman Sachs discusses how increased spending by hyperscalers is expected to continue driving earnings growth across various sectors and regions, particularly benefiting European stocks. He highlights Europe's valuation advantage and strong profit generation despite lower tech exposure, anticipating continued moderate gains.