Summary of Key Points from the Conference Call Industry Overview - The report focuses on the cloud and hyperscale data center industry, highlighting the expected capital expenditure growth for 2026 driven by artificial intelligence demand, monetization improvements, and competitive intensity [1]. Core Insights and Arguments - RBC's analysis indicates that the increase in memory prices alone can account for approximately one-third of the overall capital expenditure growth among the top ten hyperscale and new cloud vendors [1]. - Data center memory expenditure is projected to rise from approximately $107 billion in 2025 (about 20% of capital expenditure) to around $237 billion in 2026 (about 30% of capital expenditure) [1]. - It is estimated that memory will account for about 45% of the absolute dollar growth in capital expenditure by 2026, with approximately three-quarters of this growth attributed to memory [1]. - Excluding memory, capital expenditure is expected to experience a healthy growth of about 40% in 2026, following an estimated growth of around 80% in 2025 [1]. Additional Important Points - The report emphasizes the significant role of memory pricing in shaping the capital expenditure landscape for cloud and data center investments, which may be overlooked in broader discussions about industry growth [1].