Bloomberg Surveillance · Thursday, July 30, 2026
The tech trade is facing increased risk due to hyperscalers burning through cash on capital expenditures without immediate AI productivity gains. Additionally, a significant increase in equity supply, with buybacks and mergers struggling to offset it, is creating pressure.
“Well, I think we've got two things going on. So number one, the tech trade is really as a result of the hyperscalers burning through their cash flow not slowing down on their capex spending.”
“You're not seeing the big productivity lifts from AI just yet, although we all use it in our day to day lives and are finding it to be incredibly helpful.”
“This is the first time since two thousand in this year that you're going to see net equity issuance and net equity demand kind of coming out of it, So buybacks and also mergers really being even so, it's a lot to hit the tech at the tech trade at this point.”