“Oil and tech are different in many ways, yet there’re some parallels between the two sectors: both have well established companies with large capex budgets with many smaller companies impacted by this spending. With oil at half of its summer peak levels, capex budgets are being cut as seen by Linn Energy’s 50% cut and ConocoPhillips 20% reduction to name a few. Meanwhile, U.S. tier-1 service provider capex for CY15E is expected to decrease 8% to ~$43B. The difference is web 2.0 data-center capex is expected to increase +14% to $41B, helping to support the technology sector.”

RBC Capital Markets analyst Mark Sue.