Ameriprise warns AI spending outpaces revenue growth ahead of hyperscaler earnings
AMP•Ameriprise Financial warned that AI spending plans may need resetting unless revenue growth accelerates. Capital expenditure estimates for the largest AI spenders more than doubled over the past year, while revenue estimates rose roughly 25%; the five major hyperscalers are forecast to spend over $1 trillion combined in the next 12 months.
1. Spending and revenue estimates
Ameriprise Financial warned that AI spending plans may need resetting unless revenue growth accelerates, ahead of major hyperscaler earnings reports. Consensus capital expenditure estimates for the largest AI spenders more than doubled over the past year, compared with roughly 25% growth in revenue estimates; the five major hyperscalers are forecast to spend over $1 trillion combined on capital expenditures over the next 12 months.
2. Investors watch returns
Investors will scrutinize monetization, cash generation and funding for expansion as Meta reports Wednesday and other major hyperscalers report next week. CoreWeave bonds traded at distressed levels, highlighting investor demands for clearer returns on AI infrastructure spending.
