According to the article, Amazon's leadership said capex next year will be meaningfully higher than this year, when the company is slated to spend about $220 billion on AI infrastructure. JPMorgan, through analyst Doug Anmuth, estimates Amazon's capex will rise 77% year over year to $395 billion next year and reach $476 billion in 2028. The article says this spending level has made investors uneasy about returns on the investment, which is why many hyperscale stocks are being sold.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AMZN
▼ Likely negativeAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.6T |
| Close on 10/30/2026 | 240.47 |
| Change that session | -1.36% |
NVDA
▲ Likely positiveNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- JPMorgan says AI stock selling may be nearing its limit as positioning resets
JPMorgan told clients that recent selling in AI-related stocks may be nearing its limit, as equity positioning has reset significantly since mid-September. Strategist Nikolaos Panigirtzoglou said that while some near-term headwinds remain, positioning adjustments could start to limit further downside. On concerns about neocloud funding, the bank argued the AI capex cycle would not be derailed even if their funding model proved unviable, since neoclouds are neither critical nor large and could be absorbed by hyperscalers. The tech sector is running a financing surplus of about $400 billion this year as cash flows exceed capex. Semiconductors now consume about a fifth of total global equity risk capital, leaving them vulnerable to volatility-driven selling.
- JPMorgan's shocking capital expenditures estimates for Amazon, and worries for McDonald's ahead
Yahoo Finance Executive Editor Brian Sozzi breaks down the day's top headlines, saying hyperscalers have become “silly cheap,” Nvidia (NVDA) has an “unbelievable” valuation, and McDonald's (MCD) earnings should worry investors. He also interviews John Chambers, Founder & CEO of JC2 Ventures and former Cisco Executive Chairman & CEO, about the current state of the tech market.
- Update: Nasdaq Composite Marks Worst Month Since March 2025 as AI Spending Fears Rise
- Amazon sets up $80 billion supplier financing for AI hardware
In a quarterly filing released Thursday, Amazon said it set up supplier financing arrangements allowing it to borrow up to $80 billion against hardware purchases, available from early 2027 through the third quarter of 2028. Lenders would receive collateral rights over certain assets, though the filing did not specify which ones. Amazon had mostly funded data center and chip spending from cloud and retail cash flow and its largest corporate bond sales to date, and had not previously used the joint financing or chip-leasing structures used by competitors. Third-quarter capital spending rose more than expected, producing a free cash outflow of $42.4 billion for the year ended Sept. 30. Total spending commitments reached $883 billion at the end of September, up 36% from three months earlier and more than double the year-earlier figure, and shares fell about 2% at midday Friday in New York.
- Amazon cloud is nearly sold out through 2027. Can its AI spending keep up with demand?
Amazon Web Services (AWS) has sold out most of its cloud capacity for 2027 and a substantial portion of 2028, according to CEO Andy Jassy speaking on a podcast. Despite planned capital expenditure of about $220 billion in 2026, Amazon is struggling to meet demand from AI labs and enterprise customers, and much of its 2026 capacity is already booked. Jassy described AI demand as a “barbell”: AI labs are consuming computing resources at an unprecedented scale, while the middle of the market, where everyday business software has yet to widely adopt AI, remains largely untapped. He said inference is still about an order of magnitude too expensive to be used pervasively, suggesting costs need to fall roughly tenfold. Amazon's Trainium chips are positioned as a lower-cost option, offering 30% to 40% better price-performance than comparable processors, and Amazon has disclosed more than $225 billion in future Trainium revenue commitments, including deals involving Anthropic and OpenAI.
- Nasdaq sinks more than 2 % as investors raise questions about AI debt
Related markets
Latest news
- Bitmine Buys More Ethereum as Tom Lee Calls the Binance Hack Bullish
Bitmine Immersion Technologies bought 8,573 more ETH in its latest weekly purchase, lifting total holdings to 6,060,506 ETH, worth about $13.7 billion, or 4.9% of Ethereum's 122.2 million token supply. The company said it is 99% of the way to its goal of owning 5% of the network. Chairman Tom Lee said the record $6.4 billion Binance hack, which the FBI attributed to North Korea, showed crypto's resilience, as ETH fell only 4%, compared with an 8% drop on the day of the $1.5 billion Bybit hack in February 2025. Lee cited six reasons, including Binance's ability to cover all customer losses and the FBI naming North Korea within two days. As of Nov. 1, total holdings, including cash, other tokens and investments, reached $14.5 billion, and about 86% of its ETH is staked through its MAVAN platform, with projected annual staking revenue of about $358 million.
- Behind Anthropic's 1,127% revenue surge — and the computing bill that erased its profit
Anthropic has just filed updated financial paperwork ahead of an IPO that could take place by the end of this month. Its revenue surged 1,127%, but computing costs erased its profit.
- Billions of USD unexpectedly leave US stocks, expert warns of one thing for Vietnamese stocks
Global equity funds drew net inflows for a sixth straight week, totaling over $10 billion, though the pace slowed sharply from $25 billion the previous week. Flows diverged, with US equity funds seeing $6.65 billion in outflows, while Asian equity funds attracted nearly $10 billion and emerging-market funds added $2.2 billion. ABS analyst Nguyễn Thế Minh said this shift is a favorable signal for Vietnam's stock market, though its ability to capture the inflows depends on foreign trading activity, market attractiveness and corporate earnings outlook. On seasonality, the VN-Index has averaged a 2% gain in November over 2000–2025, with a 54% chance of rising, but the expert said this should serve only as a reference. The article stresses that a sustainable recovery requires improved cash flow and corporate earnings, amid high valuations and signs of a slowing US economy.
- Securities firms' proprietary trading net sells nearly VND 300 billion early in the month, bucking heavy buying in one bank stock
Proprietary trading desks of securities firms net sold VND 263 billion on HoSE in the November 2 session, led by MWG with a net sale of VND 180 billion, followed by BID, SSI, HPG and STB. HDB was the strongest net buy at VND 161 billion. The market fell broadly, with 27 of 30 VN30 stocks declining, and the VN-Index closed at 1,710.72 points, down 30.9 points (-1.77%). Foreign investors net sold VND 453 billion across the market. Liquidity improved from the previous session, but cash flow was still insufficient to absorb the heavy supply.
- We're trimming a rallying industrial stock, looking for its next catalyst post-spinoff
Jim Cramer's Charitable Trust is selling 58 DuPont (DD) shares at roughly $143 each. After Monday's trade, the trust holds 450 DD shares, cutting its portfolio weight to 1.65% from 1.85%. The small trim offsets an earlier Boeing (BA) purchase that day. DuPont shares are up about 10% since late September, helped by rotation out of data center buildout names, but remain about $12 below their 2026 peak and are up about 18% year to date. The author says the simplification story has largely played out a year after the Qnity Electronics separation, with shares up about 36% since the breakup. The sale will realize a gain of roughly 48% on shares bought in August 2023, and the author will watch DuPont's earnings before Tuesday's open.
- Monteoro Minerals Ltd. (MTAU) Opens the Market
Monteoro Minerals Ltd. (TSXV: MTAU) has listed on the TSX Venture Exchange, and its leadership joined Toronto Stock Exchange executive Graham MacKenzie to open the market in celebration. The Colombia-focused explorer is advancing gold and copper projects, including Marquesa, Nudillales and La Ruana, and plans drilling at multiple targets in the coming months. Its management and board have more than 100 years of combined experience in Colombia and have been involved in discoveries hosting more than 50 million ounces of gold-equivalent resources. The company also has a pipeline of additional projects under development.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.