Ameriprise flags Mag Seven AI capex surge as free cash flow shrinks 88% - AMP News | RalliesAmeriprise flags Mag Seven AI capex surge as free cash flow shrinks 88%
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AMP• Big Tech AI spending and cash flow pressure
- Ameriprise flagged rising investor scrutiny of Big Tech AI spending as capex surges while free cash flow compresses across the Magnificent Seven.
- Combined quarterly capex for the group excluding Nvidia projected at USD 237.5 billion in Q4 2026 from USD 65.3 billion in Q3 2024.
- Over the same period, combined free cash flow forecast to fall 88%, raising focus on proof that AI investment converts into revenue.
- Higher long-end yields seen tightening financial conditions, with the 30-year Treasury yield above 5.25%, the highest since 2007.
- Big Tech debt estimated near USD 455 billion, with hyperscaler bond spreads 61% wider than the broad investment-grade index.
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