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Advanced Micro Devices' (AMD) second quarter results have fueled optimism that the AI trade may not be over yet, leading to a pop in Nvidia (NVDA) shares. But that may not be the only driver.

Bernstein managing director and senior analyst Stacy Rasgon tells Morning Brief he believes that what's been driving this uptick in tech is capex spending from companies like Meta (META) and Alphabet (GOOG, GOOGL) for their AI projects.

"Even Meta reported last night. Not only do they take their capex guide up for the year, they said that they're going to have like probably substantial increases next year and so I think that's really what's important. The big worry that people have is just is there an air pocket coming? There's so much spending going on. The numbers have gotten so big so quickly. People worry about sustainability and what we've been hearing from some of the customers is it looks like that spend, at least for now, is sustaining. I think that's what's been driving things."

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This post was written by Nicholas Jacobino