Bloomberg Surveillance · Monday, August 10, 2026
The capital expenditure for the 'Big Four' tech companies is expected to surpass one trillion dollars next year, an enormous increase. However, a key point is that these companies are beginning to show a return on investment (ROI) through expanding margins and increasing prices for compute, which could reduce the need for extensive capital markets funding.
“We're going to see a big step up in cap X next year to over you know, over a trillion dollars from from the Big four.”
“But the bottom line is is that what they're what they're starting to show is the ROI and this is what the market has been looking for.”
“We saw it from Microsoft and Amazon's earnings where cloud growth has accelerated and so you're seeing margins expand and you're seeing rent prices for compute starting to move higher.”