Benzingaยท2025-09-10 12:26Group 1 - The "Magnificent Seven" tech giants, including Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla, are significantly investing in AI data centers, which is leading to a slowdown in share buybacks across the S&P 500 [2][4] - S&P 500 companies reported a 24% year-over-year growth in capital expenditures during the second quarter, while gross buybacks experienced a decline of 1% [3][4] - The Magnificent Seven accounted for nearly 30% of S&P 500 gross buyback spending but recorded no year-over-year buyback growth during the quarter, having invested $368 billion in AI-related capital expenditures this year [4] Group 2 - Goldman Sachs projects S&P 500 buybacks to rise by 12% to $1.2 trillion next year, although this growth may be constrained by high AI-related capital spending [4] - In contrast to the current slowdown, corporate buybacks had previously surged, with S&P 500 firms authorizing a record $750 billion in repurchases by June 2025, up from approximately $600 billion in the same period in 2023 and 2024 [5][6] - Major tech companies have announced significant stock buybacks, with Apple rolling out a $100 billion repurchase plan, Nvidia approving a $60 billion program, and Alphabet announcing a $70 billion buyback [7]