Bloomberg Surveillance · Wednesday, July 15, 2026
Enterprise capital expenditures are only increasing by 4% year-over-year, while component costs have surged by 25%, creating a significant mismatch. This situation is putting pressure on IT managers and could impact software renewals towards the end of the year.
“The enterprise capex is only up four percent year every year, and component costs are up twenty five so you have a mismatch on dollars being spent. I mean a lot of these IT managers are getting creamed on what they're spending on. And this is one of the problems with IBM. They didn't see it coming yesterday and that's why the stock was off twenty five percent. So I as you look into the end of the year, the big debate is how much do the global two thousand have to spend and this headwind of twenty five percent component price increases, something has to give and the feeling is at the tail end of the year we have to really watch software renewals.”
“I think everybody's looking at their expenses very very closely, because if you look at any semiconductor, whether it be memory or advance logic, prices are through the roof.”