Cash piled up. Margins expanded. And excess capital flowed back to shareholders through aggressive buybacks and steadily rising dividends. U.S. hyperscalers became machines of financial efficiency — generating enormous free cash flow while keeping capital intensity relatively contained.That era is ending.According to Goldman Sachs analysts Ben Snider and Ryan Hammond, Wall Street consensus estimates now project hyperscaler capital expenditures will reach $667 billion in 2026 — up $127 billion since the star ...

BofA Securities analyst Justin Post reiterated a Buy rating on Amazon.com Inc (NASDAQ:AMZN) and kept his $275 price target, arguing that Amazon Web Services‘ aggressive capacity expansion could drive upside despite near-term concerns around AI spending. • Amazon.com stock is holding steady today. Where are AMZN shares going?AWS Capacity Buildout Gains MomentumPost noted AWS doubled power capacity since 2022 and added 3.9 gigawatts in 2025 (including 1.2 gigawatts in the fourth quarter).The analyst said Amaz ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - Nvidia's growth in the AI sector has significantly benefited TSMC, which has become a crucial player in the semiconductor manufacturing space, valued at $2 trillion [1][2] - TSMC manufactures all of Nvidia's advanced AI chips, creating a symbiotic relationship where increased sales of Nvidia's chips lead to higher production demands for TSMC [2][4] - The rise of TSMC in market capitalization, surpassing major companies like Saudi Aramco and Meta, indicates a shift in the global tech hierarchy, with semiconductor manufacturing now at the forefront [3] Group 1 - TSMC is not competing in the AI boom but is enabling it by providing essential manufacturing capabilities for Nvidia's chips [2][4] - The dependency of major AI companies, including Apple, Microsoft, Amazon, and Alphabet, on TSMC for their advanced chips highlights TSMC's foundational role in the AI ecosystem [3][4] Group 2 - TSMC's position as a second-order winner in the AI boom is solidified by its focus on chip manufacturing rather than developing AI models or cloud infrastructure [4] - As long as Nvidia continues to lead in the AI sector, TSMC is likely to remain one of the most significant beneficiaries of this growth [4]

Core Insights - Adobe's expanding partner base and AI initiatives are expected to help the stock navigate a challenging business environment, particularly as traditional SaaS software stocks face ongoing AI disruption. An innovative AI-infused portfolio is anticipated to assist Adobe in competing against major players like Microsoft and Alphabet in the near term. Adobe shares have declined by 27.1% year to date [1]. Group 1: Partnerships and AI Integration - Adobe has a robust partner ecosystem that includes Amazon Web Services, Microsoft Azure, Google, and OpenAI, among others. The company is expanding its partnership with WPP to deliver integrated solutions for global brands, optimizing media through AI agents [2]. - Adobe's applications, such as Firefly, Express, and Creative Cloud, are integrating models from various partners, enhancing their capabilities and performance [2]. Group 2: Product Development and Adoption - The continued adoption of Adobe's cloud-based platforms, including Acrobat and Express, is expected to drive growth, supported by AI-powered features like Firefly and Acrobat AI Assistant. These innovations are facilitating faster content creation and improving document productivity, which is positively impacting subscription renewals and premium upgrades [3]. - Users are increasingly relying on Acrobat AI Assistant for efficient content consumption and utilizing Express for creating customized presentations and designs. This trend is expected to contribute to top-line growth in fiscal 2026, with revenue estimates at $26.04 billion, reflecting a 9.5% increase from fiscal 2025 [4][8]. Group 3: Competitive Landscape - Adobe's AI business remains small compared to competitors like Microsoft and Alphabet. Microsoft is experiencing growth in its Intelligent Cloud revenues, driven by Azure AI services and the AI Copilot business, which enhances customer relationships and revenue per user [5]. - Alphabet is leveraging AI across its offerings, including Search and Google Cloud, which is driving monetization opportunities and overall growth [6]. Group 4: Financial Performance and Valuation - Adobe shares have underperformed, losing 42.5% over the past year, compared to a 25.2% return in the broader Zacks Computer and Technology sector [7]. - The stock is currently trading at a lower forward price/sales multiple of 3.94 compared to the sector average of 6.38, indicating a potential undervaluation [11]. - The Zacks Consensus Estimate for fiscal 2026 earnings is $23.47 per share, suggesting a 12.1% growth from fiscal 2025 [14].

Fears over artificial intelligence are now hitting bond investors, according to the latest credit investors survey from Bank of America Global Research.An AI bubble is seen as the top risk for the first time, with investors expecting a surge in bond issuance from hyperscalers, the February poll found. Some 23% of those surveyed said it was their biggest concern, compared to 9% who said so in the firm's December poll. Companies including Amazon, Google parent Alphabet and Meta have announced big spending pla ...

Nvidia Corp (NASDAQ:NVDA) has become the single most important supplier in the AI economy. But its dominance may be quietly accelerating the forces that could eventually weaken it.But Nvidia's scale, pricing power, and strategic importance are creating a new priority inside its biggest customers: independence.Hyperscalers Are Preparing For Life Beyond NvidiaThe more hyperscalers spend on Nvidia, the stronger their incentive becomes to reduce reliance on a single supplier.Amazon is scaling its Trainium chips ...

We are less than two months into the year, and Amazon's (NASDAQ: AMZN | AMZN Price Prediction) stock is in the midst of a collapse. ...

Market Analysis by covering: Amazon.com Inc. Read 's Market Analysis on Investing.com ...

Looking for more investing ideas like this one? Get them exclusively at The Dividend Kings. Learn more >>As an investor and an analyst, my job is to own/cover quality businesses where there is a divergence between fundamentals and sentiment. When I refer to quality, I mean leading companies with promising growthHi, my name is Kody. Aside from my articles here on Seeking Alpha, I am also a regular contributor to Sure Dividend, The Dividend Kings, and iREIT+Hoya Capital. I have been investing since September ...