Bloomberg Surveillance · Monday, July 20, 2026
Investors are closely scrutinizing the CAPEX projections of hyperscalers like Google, with expectations for next year to exceed $800 billion. The market is looking for justification for this spending, particularly in light of potential delays in AI model rollouts and competition from open-source alternatives.
“Ron Jose of City expecting CAPEX projections for next year to reach over eight hundred billion US dollars, writing, we believe this is by far the top focus into two Q earnings, given continued aim around and rising component pricing.”
“You would think if there was more pushback, I think the equity would actually come back a little bit more than they are. Frankly, right now, we are waiting when Google announces on Wednesday. We're waiting for them to really reassert their strategy and where they want to go, meaning that we have delays on Gemen on some of their models like Gemini three point five pro, we've seen some issues where they're sort of falling behind on other things, and so we really want to see is what are they going to do with all these all this capex is being spent.”
“The open source movement is absolutely catching up at a faster pace, which is certainly causing us and everyone on the street to say, Okay, we're investing all these dollars and intelligence and compute and energy, yet for only to be copied down the road, or not copied, but frankly followed.”