With the Singapore Grand Prix in a few hours, I can't help but draw comparisons to the financial markets and the AI trade.

One slow pitstop or a miscalculated overtake can undo weeks of preparation and cost millions of dollars.

So with AI and semiconductor earnings fast approaching, it feels like we need a quick pitstop to get the race back on track.

Rates remain high. Oil prices are elevated. Fresh frontier lab ARR concerns. AI capex. Circular financing.....all create some dark clouds which have resulted in de-risked positioning and low sentiment.

Similarly, consumer confidence is low. New research from Morgan Stanley finds that net sentiment from Americans towards AI is at +14% compared with -20% for data center construction, with water requirements and environmental concerns among the biggest objections.

It therefore seems like AI policy will become an even bigger stumbling block in the years to come...

But the positive is that business fundamentals have remained strong highlighted by recent sold-out comments from $Micron Tech(MU.US) and $Lumentum(LITE.US) CEOs. Plus $Taiwan Semiconductor(TSM.US) reporting 55% YoY revenue growth as the de-facto proxy for the wider AI trade.

My beloved Chelsea won 5-1 yesterday. But conceding even just 1 goal won't be good enough for the AI trade.

With sentiment at fresh lows, I feel like all the key infrastructure companies need to report without any hiccups.