AJ Bell warns AI capex boom risks stalling if capital markets balk at funding needs

AJ Bell analysis flags rising downside risks to the AI capex boom as hyperscalers’ free cash flow weakens, fixed assets grow, debt rises. Aggregate capex across Alphabet, Amazon, Coreweave, Meta, Microsoft, Nebius, Oracle, SpaceX forecast at $971 billion, or 46% of sales. Consensus expects $1.3 trillion in 2027 capex, rising to $1.4 trillion in 2028, with capex-to-sales projected to ease. Key threat: capital markets could demand higher funding costs or refuse new equity or debt, forcing a spending pullback. Worst-case scenario: AI fails to deliver productivity gains, demand softens, competition and regulation erode profits despite heavy depreciation burdens. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. AJ Bell plc published the original content used to generate this news brief on October 13, 2026, and is solely responsible for the information contained therein. (C)