Next year's big tech capex will be meaningfully higher than where the Street is at in part because of today’s Ratepayer Protection Pledge from the White House.
➡️Tech is happy to pay for power.➡️This marks a shift in the AI Arms Race by laying from silicon to power.➡️This will increase our reliance on Google, Meta, Amazon and Meta.➡️The cost will translate to higher capex for longer.2026, the mega caps will increase capex by about 65% compared to 70% last year.➡️2027, the Street is expect mega cap capex to increase by 14%. I expect it to be 40%.➡️Currently the Street is at 14%. The numbers: Google 13%, Amazon 6%, Meta 13%, Microsoft 19%.Source: Gene Munster
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