Fast Money: AI Capex Peak by 2027 and the Case for Staples Over Tech
As seen on the 24/7 Wall St. homepage on November 14, 2026.
FAA Ground Stop, Anthropic IPO and What to Expect From Nvidia and Nike Next Week
- Nationwide FAA ground stop hit airlines after hours while cybersecurity names caught bids
- Traders split on Anthropic's IPO: 17x sales versus SpaceX's 100x, with commoditization risk flagged
- Peter Boockvar sees peak AI capex by 2027, rotating toward staples like Kimberly-Clark
- Nike investor day preview with the stock at 13-year lows; desk picked Deere and J&J over Apple at 40x
The defensive rotation argument got concrete here: if AI capex peaks in 2027, the picks-and-shovels trade loses its bid first and staples absorb the flows. The desk's valuation game landed the same way, favoring Deere, Coca-Cola and Johnson & Johnson over richly priced tech, and few on the panel believe Nike's new CEO reverses share losses at next week's investor day.
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If AI capital spending peaks around 2027, the picks-and-shovels names tied to that buildout lose their bid before the broader market notices, and that capital has to land somewhere. Peter Boockvar's answer is consumer staples, with Kimberly-Clark as the defensive position that absorbs it.
With Apple trading at roughly 40 times earnings, the panel favored Deere, Coca-Cola, and Johnson and Johnson as better uses of capital at current prices.
Anthropic's coming IPO split the desk, with its discussed valuation of 17 times sales looking cheap against comparable private-market deals only if commoditization risk in AI models never materializes.
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Nike's investor day arrives with the stock at 13-year lows, and few traders believe the new CEO can quickly reverse share losses while the structural competitive pressures remain unresolved.
The FAA nationwide ground stop, tied to a telecommunications outage, hit airline stocks after hours and pushed cybersecurity names higher as the market priced in infrastructure vulnerability.
Mentioned: AAL, KO, TGT, KMB, MKC, UAL, WMT, TJX, JNJ, DE, NKE, AAPL, HD, MSFT
