Overview
- Late July, Amazon reported 37% year‑over‑year AWS growth and raised full‑year capital spending guidance to $220 billion, which helped calm investor fears that AI capex cannot produce returns.
- Nvidia posted a record quarter of about $81.6 billion in revenue and confirmed large orders for its AI chips while its share price pulled back amid reports of large vendor‑financing talks that have raised scrutiny.
- Meta has pushed capex plans into the hundreds of billions and signaled the potential for negative free cash flow, which caused sharp investor selloffs and renewed questions about its ability to monetize heavy AI spending.
- Apple said memory and component shortages driven by hyperscaler AI demand were ‘very significant,’ and its weaker revenue guidance triggered an almost 10% after‑hours share drop that threatened as much as $500 billion in market value.
- Analysts warn the buildout—already more than $1 trillion in capex since 2023 with hundreds of billions expected this year—is straining HBM and memory supply, power grids and concentrated vendor finance links, which could amplify second‑order risks if conditions worsen.