Hyperscalers: Are Cloud Giants Back in Fashion for Investors?

Laura Cooper, Nuveen's global investment strategist and macro credit head, points to a rekindled romance with "hyperscaler" companies. We're talking about those giants that run the cloud infrastructure powering half the world, like Amazon's AWS or Microsoft's Azure. Until recently, many eyed them suspiciously, but now the tide is turning.

Nuveen is a global investment management firm overseeing over $1.2 trillion in assets. When a figure of this caliber speaks, the market listens. It seems the golden age of cloud giants, once thought over, might be getting a second wind, at least in the eyes of capital movers.

The main reason? Their valuations have become more reasonable, and revenue growth is starting to pick up again. It's a bit like when a designer dress goes on sale: suddenly, it's much more appealing. Laura Cooper told Bloomberg Television that valuations have come off.

This makes investing more tempting after a period of perhaps excessive euphoria, where prices soared. Not only that, but the sector has seen "several weeks of consecutive outflows" of capital, Cooper states. Now, however, she expects a slight upturn in revenue growth going forward. So, a good sign for those seeking stability and a decent bargain. Who knew cloud infrastructure could be "sexy" again?