Evercore warns hyperscaler AI capex could push companies cash-flow negative

Evercore ISI analysts warned that Big Tech AI capital expenditure has grown so large some hyperscalers risk going cash-flow negative, a "red flag" for stock valuations. Meta plans $55B, Alphabet doubled to $180B, and Amazon guided 50% higher to $200B in AI capex this year. Hyperscalers now hold more debt than cash on aggregate. Alphabet raised $30B+ last week alone. While leverage remains broadly healthy and systemic AI risks are absent, the debt-driven expansion has sent jitters through markets.

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