--- title: Google’s AI boom has a funding problem. description: "Yet earnings hit $2.12 a share versus roughly $3 expected.\n\nThe warning signs?\n→ $51.4 billion in capital spending.\n→ Negative free cash flow.\n→ Zero buybacks.\n→ $12.4 billion in share issuance and $28.7 billion in new bonds.\n\nAn $8.7 billion paper loss on AI investments drove more than half the earnings miss. Those same investments previously inflated profits.\n\nHere’s the circularity: Google backs AI startups that rent its computing capacity. Their valuations then move Google’s own earnings by billions.\n\nCloud growth is impressive. But the cash demands are staggering—and management says spending rises again next year.\n\nMy take: buybacks look increasingly distant.\nThe question for AI investors: how many other cash machines will turn to Wall Street to fund the boom?\n\nSource: Hedgie" image: https://blog.syzgroup.com/hubfs/1793224978803.jpg --- [![Syz Private banking](https://blog.syzgroup.com/hs-fs/hubfs/Logo.png?width=140&name=Logo.png "Syz Private banking")](https://www.syzgroup.com/fr) ## **Thinking** out loud [Subscribe](https://25733253.hs-sites-eu1.com/newsletter-signup?hsLang=en) [![Contact Us](https://hubspot-no-cache-eu1-prod.s3.amazonaws.com/cta/default/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2.png)](https://hubspot-cta-redirect-eu1-prod.s3.amazonaws.com/cta/redirect/25733253/3d762f49-4e71-4f99-97b1-bf6781ef3da2) - [OUR SERVICES](https://www.syzgroup.com/en/private-banking) - [ABOUT SYZ](https://www.syzgroup.com/en/about/welcome-to-syz) - [CAREERS](https://www.syzgroup.com/en/careers) - [PRESS](https://www.syzgroup.com/en/news) - [Blog Homepage](https://blog.syzgroup.com) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [The week in seven charts](https://blog.syzgroup.com/fast-food-for-thoughts/tag/the-week-in-seven-charts) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Fixed Income Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [Equity Weekly](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [CONTACT](https://www.syzgroup.com/en/contact-us/form) - [ENGLISH](https://www.syzgroup.com/) - [FRANÇAIS](https://www.syzgroup.com/fr) - [Slow Food for Thought](https://blog.syzgroup.com/slow-food-for-thought) - [Focus](https://blog.syzgroup.com/slow-food-for-thoughts/tag/focus) - [Asset allocations Insights](https://blog.syzgroup.com/slow-food-for-thoughts/tag/asset-allocation-insights) - [Market Outlook](https://blog.syzgroup.com/slow-food-for-thoughts/tag/market-outlook) - [Swiss Perspectives](https://blog.syzgroup.com/slow-food-for-thoughts/tag/swiss-perspectives) - [Fast Food for Thought](https://blog.syzgroup.com/fast-food-for-thought) - [Flash](https://blog.syzgroup.com/fast-food-for-thoughts/tag/flash) - [Weekly Fixed Income](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-fixed-income) - [The week in seven charts](https://blog.syzgroup.com/slow-food-for-thoughts/tag/the-week-in-seven-charts) - [Global markets outlook](https://blog.syzgroup.com/fast-food-for-thoughts/tag/global-markets-outlook) - [Weekly Equities](https://blog.syzgroup.com/fast-food-for-thought/tag/weekly-equities) - [Syz the moment](https://blog.syzgroup.com/syz-the-moment) - [Crypto corner](https://blog.syzgroup.com/crypto-corner) - [Syz AI Insights](https://blog.syzgroup.com/syz-ai-insights) - [Our Services](https://www.syzgroup.com/en/private-banking) - [About Syz](https://www.syzgroup.com/en/about/welcome-to-syz) - [Careers](https://www.syzgroup.com/en/careers) - [Press](https://www.syzgroup.com/en/news) - [Contact](https://www.syzgroup.com/en/contact-us/form) - [English](https://www.syzgroup.com/) - [Français](https://www.syzgroup.com/fr) ## **Sign-up** for our newsletter This website uses cookies to enhance user navigation and to collect statistical data. 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If you made a mistake, please change here USA Country Switzerland Canada: Other than Ontario, Quebec, Alberta Canada: Ontario, Quebec or Alberta USA Other country Language Language English French German Italian I confirm Legal information This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. 29 Oct 2026 - - - #### Google’s AI boom has a funding problem. Yet earnings hit $2.12 a share versus roughly $3 expected. The warning signs? → $51.4 billion in capital spending. → Negative free cash flow. → Zero buybacks. → $12.4 billion in share issuance and $28.7 billion in new bonds. An $8.7 billion paper loss on AI investments drove more than half the earnings miss. Those same investments previously inflated profits. Here’s the circularity: Google backs AI startups that rent its computing capacity. Their valuations then move Google’s own earnings by billions. Cloud growth is impressive. But the cash demands are staggering—and management says spending rises again next year. My take: buybacks look increasingly distant. The question for AI investors: how many other cash machines will turn to Wall Street to fund the boom? Source: Hedgie [#earnings|](https://blog.syzgroup.com/syz-the-moment/tag/earnings) [#google](https://blog.syzgroup.com/syz-the-moment/tag/google) ![Google’s AI boom has a funding problem.](https://blog.syzgroup.com/hubfs/1793224978803.jpg) ![Google’s AI boom has a funding problem.](https://blog.syzgroup.com/hubfs/1793224978803.jpg) #### Disclaimer This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. Read More ## Related Articles [earnings|](https://blog.syzgroup.com/syz-the-moment/tag/earnings) [google](https://blog.syzgroup.com/syz-the-moment/tag/google) #### [GOOGL in charts](https://blog.syzgroup.com/syz-the-moment/googl-in-charts?hsLang=en) Cloud was only big beat. Cloud came at $30.7bn vs $29.1bn expected (+103% y/y), but Search, YouTube, Subs and Services all missed. Two speeds. Cloud doubled; Search grew 12% (vs ~14% buyside bogey), YouTube 9% (below 10% toleration line), and Network just 1%. Source: Zerohedge **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 29/10/2026 [Technology|](https://blog.syzgroup.com/syz-the-moment/tag/technology) [earnings](https://blog.syzgroup.com/syz-the-moment/tag/earnings) #### [$SKHY SK HYNIX ABSOLUTELY CRUSGED THEIR Q3 EARNINGS](https://blog.syzgroup.com/syz-the-moment/skhy-sk-hynix-absolutely-crusged-their-q3-earnings?hsLang=en) SK Hynix surge +9% after Q3 revenue surpasses ₩100 TRILLION for the first time in the company's history. Revenue jumped 328% YoY to ₩104.62 Trillion ($78.8B), beating expectations of ₩98.23 Trillion ($74.0B). Operating profit surged 632% YoY to ₩83.33 Trillion ($62.8B), beating estimates, while net profit increased 216% to ₩39.78 Trillion ($30B). The company says it has sold out of DRAM and HBM chips through 2029 as it expands long-term supply deals with major customers. SK Hynix plans to return ₩100 Trillion ($75B) to shareholders this year through dividends and over ₩60 trillion in share buybacks and cancellations. Here are the details 👇 • Revenue: $78.9B vs. Est. $74.8B • Operating profit: $62.8B vs. Est. $58.5B • Gross Margin: 86% vs. Est. 85% • DRAM ASP: +28% QoQ • NAND ASP: +25% QoQ • Cash: $86.3B Q4 Guidance • DRAM shipments: +25% QoQ • NAND shipments: +5% QoQ FY27 Guidance • DRAM demand: +25% YoY • NAND demand: +18% YoY Signed 5-year LTAs with 14 major customers securing over 50% of its 2027 and 2028 capacity. Source: Shay Boloor @StockSavvyShay Bull Theory **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 28/10/2026 [earnings](https://blog.syzgroup.com/syz-the-moment/tag/earnings) #### [Here's a Q3 earnings season scorecard after week II](https://blog.syzgroup.com/syz-the-moment/heres-a-q3-earnings-season-scorecard-after-week-ii?hsLang=en) Source: Facstet **[Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/author/charles-henry-monchau?hsLang=en)** | 26/10/2026 ## Straight from the Desk # Syz the moment Live feeds, charts, breaking stories, all day long. [Discover more](https://blog.syzgroup.com/syz-the-moment) ## **Thinking** out loud Sign up for our weekly email highlighting the most popular posts. 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