According to @KobeissiLetter, the CapEx-to-depreciation ratio in the S&P 500 Information Technology sector has surged to approximately 1.94, the highest level in at least 20 years. source: @KobeissiLetter. The author states this metric tracks how much companies invest in new assets relative to the rate those assets depreciate and characterizes the surge as a historic wave of tech CapEx transforming the entire market. source: @KobeissiLetter. For traders, a ratio near 1.94 means investment is nearly double depreciation within the sector, highlighting a pronounced capex upcycle to monitor across tech equities and broader risk sentiment. source: @KobeissiLetter.

According to @KobeissiLetter, the S&P 500 Information Technology sector outperformed the S&P 500 by a record 2.2x in July 2025 (source: @KobeissiLetter). The price gap between technology and the broader S&P 500 has more than doubled over the last eight years, underscoring unprecedented relative strength in mega-cap tech leadership (source: @KobeissiLetter). For trading, this level of concentration suggests index performance is highly sensitive to tech leadership, a key consideration for equity index futures, sector rotation strategies, and cross-asset risk monitoring in crypto markets (source: @KobeissiLetter).