AI and the capex conundrum

AI is driving markets, but investors are asking tougher questions about capital expenditure.

In his latest piece for Professional Wealth Management, Tom Dalrymple, Gobal Equity Analyst of Aubrey Capital Management, explores the “capex conundrum” facing hyperscalers like Microsoft, Alphabet, Meta, and Amazon.

While cloud revenues and AI innovation continue to soar, the sheer scale of spending — projected to exceed $480bn in FY26 — is sparking debate about sustainability, free cash flow, and long-term returns.

This shift in sentiment highlights a crucial point: not all capex is viewed equally anymore. Investors are increasingly scrutinising whether massive AI investments have clear roadmaps, or if they risk echoing past speculative bets.

👉 Read the full analysis here: AI and the capex conundrum - Professional Wealth Management