Big Tech’s decision to steam on its capital expenditure plans is to relaunch the feeling among analysts of Wall Street, who are now increasing their estimates on the main players of artificial intelligence despite the emergence of the rival Deepseek Chinese Lab which temporarily shaken trade. American technological hyperscalers Amazon, Microsoft, Google and Meta each increase their capital expenses linked to AI despite concerns about assembly spending and delay in profit. Anxiety around the effect of the entry of China to AI has only added to the emergency for these companies, which are based on increased investments in the infrastructures of IA – that data centers and graphic processing units – to lead to more IT power and, in the end, to income. Combined expenses of the four technology giants are expected to exceed 315 billion dollars during their current financial year. Morgan Stanley analyst Brian Nowak has updated his CAPEX forecasts for the four hyperscalers, which expects expenses to reach $ 367 billion in 2026. Although he agrees with the Founding of Big Tech Investments, he recognizes that questions about the return to invested capital “will remain in concentrating.” Morgan Stanley also reiterated Nvidia as the first choice earlier this week. CAPEX GROWTH UBS faster increased its CAPEX “BIG 4” expenses estimated this year, providing that growth of 35% from one year on the other, against a previous forecast of 25%. This means that their combined capex should reach more than $ 300 billion this year, much higher than what they committed in 2024 and more than double compared to the previous year, wrote the Stratege of UBS shares Sundeep Gantori in a note Thursday to customers. “Contrary to the general perception that low -cost models like Deepseek will lead to short -term reductions in the CAPEX, we actually increase our Big 4 Capex estimates based on solid councils of Big Tech during the season of Report of 4T24 and a strong demand for demand for border models, “said Gantori. “We believe that the recent correction in AI calculation actions is exaggerated,” added Gantori. According to Gantori, the recent correction of NVIDIA and Broadcom flea manufacturers has been exaggerated, given the strong trends in the adoption of AI and calculation expenses. Nvidia and Broadcom were among the biggest losers of short, January 27 to sell technological actions, fueled by anxiety in the face of the low -cost AI model of the Chinese startup Deepseek which used less effective Nvidia chips to create a Chatbot competing on the OpenAi chatpt. DIP NVIDIA’s purchase shares are down approximately 8.2% in last month, after losing almost 17% on technological sales. Broadcom, meanwhile, plunged more than 17% that day and is still in red this year. Nvidia and Broadcom have since rallied due to a mentality “buy the decline” in AI shares. “Investors can benefit from increased volatility through structured strategies and by buying the decline in quality AI shares, because we think that the emphasis will finally go to robust fundamentals,” said Gantori. Avgo 1y Mountain Broadcom shares in the past year Melius Research analysts named Nvidia, Broadcom, Marvell Technology and Arista Networks as beneficiaries of higher capital expenses, who, according to the company, will continue to stimulate GPU demand, personalized silicon and networking. Monetization, the possible conversion of all these billions of investments in income -generating assets, will be a key objective for hyperscalers that should be front, noted Melius. “The initial reaction to” deepfreak “seems to (be) spending more, no less,” wrote Ben Reitz, technological research manager at Melius Research, in a note on Friday. “The problem for the big clouds is Know how to monetize AI faster because the available cash flows take another big blow. Real available cash flows, “added Reitz.
Big Tech AI spending plans should allow Nvidia longs to rest more easily
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