HSBC Predicts Big Tech Increases AI Capex

HSBC Global Investment Research said in its latest report that big tech firms—Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Oracle—will sharply raise capex as AI enters an early "megacycle", projecting $1.3 trillion in operating cash flow this year. The bank forecasts these firms will allocate 61% of cash flow to capex (up from 46% in 2025) and predicts $2.8 trillion group revenue in 2026, led by Nvidia.