Analysis-Among AI crowd, some investors position for slower hyperscaler spending growth
UBS says hyperscaler capex will rise 76% this year to $673 billion, but only 25% next year as investors trim semiconductor exposure.
6 Articles
6 Articles
Global Market: AI chip rally faces valuation test as investors rotate towards hyperscalers
AI chipmaker stock rallies are losing momentum as investors reassess valuations. Hyperscaler capital expenditure growth is projected to slow sharply after this year. Fund managers are rotating capital into hyperscalers and AI-benefiting sectors. Financing AI expansion faces greater scrutiny with softening bond demand. Despite volatility, long-term AI optimism remains intact for many investors.
Analysis-Among AI crowd, some investors position for slower hyperscaler spending growth
By Danilo Masoni MILAN, July 17 (Reuters) – The parabolic rally in AI chipmakers has run into turbulence amid concern about valuations and the sustainability of their bumper revenues, with some investors quietly positioning for a slowdown in the near-trillion dollar spending boom that could provide a boon to the hyperscalers footing the bill. For most of the past two years, the opposite trade prevailed: investors piled into semiconductor and inf…
Chip Stocks Slide as TSMC’s AI Mix Exposes a Spending-Growth Risk
NEW YORK, July 17, 2026, 11:05 a.m. EDT The PHLX Semiconductor Index traded about 22% below its June 22 record close. (Barron's) An approximate calculation shows high-performance computing supplied 79% of Taiwan Semiconductor Manufacturing Co.’s (NYSE:TSM) five-year revenue increase. UBS Group AG (NYSE:UBS) sees hyperscaler capex growth slowing from 76% in 2026 to 6% in…
Analysis:Among AI crowd, some investors position for slower hyperscaler spending growth
MILAN, July 17 : The parabolic rally in AI chipmakers has run into turbulence amid concern about valuations and the sustainability of their bumper revenues, with some investors quietly positioning for a slowdown in the near-trillion dollar spending boom that could provide a boon to the hyperscalers footing the bill. For most of the past two years, the opposite trade prevailed: investors piled into semiconductor and infrastructure companies on th…
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