US big tech continue to post higher capex outlook for 2026 and those figures are surprisingly large.
However, you now start to negative reactions.
1/ Their own stocks respond negatively
2/ Nvidia stock, which presumably is a beneficiary for higher capex, hasn’t responded very positively
#Why capex is less welcomed?
1/ It could just be higher inflation across the chain. higher price for infrastructure, power equipment and construction workers etc. Therefore, it’s a less-efficient use of money
2/ Investors don’t see immediate growth. The 2026 growth outlooks, which should be supercharged by already massive capex in 2025, is not impressive enough. Investors fear that marginal incremental growth coming from additional capex looks small, at least in the current year.