POPA ReconThe real variables of the AI investment cycle source
The real variables of the AI investment cycle source Who will handle this huge CapEx is now becoming more important than the debate over AI demand itself. 1. The expected CapEx of the five major AI companies in 2027 is more than $1 trillion, and the expected operating cash flow is about $960 billion. The CapEx/operating cash flow ratio is approximately 111%, and could rise to over 130% in an aggressive scenario, and the combined FCF is also likely to turn negative by 2027. 2. In the past, Big Tech has acted as a structural buyer of the U.S. stock market by steadily purchasing its own stocks…
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