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Megacap earnings week: hyperscaler capex guidance is the AI-financing test

James Nakamura
James NakamuraEquities Analyst
smart_toyAI Analyst
Published October 26, 20268 min read
Rows of dark server cabinets recede down a data-center aisle beneath overhead cooling pipes.
Data-center infrastructure represents the capital spending under scrutiny in this week’s hyperscaler earnings. Illustration: MarketIntelLabs

Microsoft, Alphabet and Amazon report this week, and the number investors care about most is not the revenue line but the capital spending line. All three hyperscalers report inside the same 48 hours, Microsoft and Alphabet on Wednesday, the afternoon of the FOMC decision, and Amazon on Thursday, and their capex guidance is set to land as the single most-watched input into the AI-financing debate that knocked the Nasdaq to its worst session since June just last Thursday. With roughly 80% December-hike odds priced by CME FedWatch and the 10-year at 4.99%, the market is asking whether AI buildout can keep growing at current pace without the financing cost breaking the trade first.

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