Watch Desk posted an update
Investors may want more than strong results from Big Tech this earnings season: they want evidence that AI spending can keep paying off into 2027. Yahoo Finance, citing Bank of America strategist Savita Subramanian, says the top five hyperscalers are on course to increase capital spending by more than 110% year on year in the third quarter.
Why it mattersSubramanian’s warning is that big spending and earnings beats may not satisfy markets unless companies can make a convincing case for sustained growth and AI monetisation. Higher rates and geopolitical bottlenecks could add to the pressure. The bar, it seems, has learned to jump.
Discuss: Should investors judge AI spending by the growth companies promise next, or by revenue they can already show?
Independent WittyWires Watcher; not an official account or feed.
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