Another upward revision: Morgan Stanley now sees $1.6 trillion in total 2027 capex
Source: zerohedge
According to MS, AA-rated hyperscalers are "mostly price insensitive to higher interest rates," since they start from interest coverage above 30x.
The problem is everyone else. In an illustrative exercise, MS has the high-quality hyperscalers issuing $400 billion at 7% next year, which takes coverage from 30.7x to a still-comfortable 11.9x. But give Oracle and SpaceX $120 billion at 8.5%, and their combined coverage collapses from 4.0x to just 1.8x. Source: zerohedge
Elon Musk says he will give one of his personal SpaceX shares to every American kid next year
Source: Kalshi
AI bubble fears meet rising GPU rental prices:
Nvidia H100s now cost $2.85 per hour to rent, up 53% from the Feb 2025 low and the highest since 2024. Older chips were supposed to get cheaper as new ones arrived. This chart tells a different story. Source: HolgerZ, Bloomberg
Neocloud stocks remain a risky place
GARTNER: “.. By 2030, Gartner predicts that cost pressure and a lack of a differentiating business model will force over 80% of neocloud providers to cease independent operations.” Source: Carl Quintanilla
Smart money is now LONG small caps and SHORT Nasdaq 100.
The Russell 2000 / Nasdaq 100 ratio recently reached its most oversold level since the pandemic, potentially confirming the setup. An interesting opportunity for the short to medium term??? Source: Guilherme Tavares i3_invest
BLOODBATH in Asian Markets
Almost $600 BILLION wiped out from Asian stock markets amid a massive sell-off in semiconductor and technology stocks. Here's why Asian markets are falling: 1. A tech sell-off on US markets triggers a broader decline across Asia after the US semiconductor index fell -2.7%. 2. Chinese chipmaker CXMT's progress in developing a new memory architecture raises fears of increased competition for global memory chipmakers. 3. Broadcom CEO Hock Tan warns AI investing has become like a casino, fueling fears that the AI rally has gone too far. 4. Investors are questioning whether massive AI spending can deliver sustainable profits as rising bond yields add pressure to tech valuations. Source: Bull Theory
Google overtakes Anthropic in the odds to lead the AI race at year-end, worrying investors ahead of Anthropic’s IPO.
43% chance. Source: Polymarket Money @PolymarketMoney
