Alphabet Raises Full-Year Capex Guidance; Tech Giants' AI Spending Strains Credit Markets

ORCL-4.20%
META-1.78%
Alphabet raised its full-year capital expenditure guidance this week, prompting an immediate rise in its corporate bond yields as fixed-income investors reassess credit risks tied to the technology sector's massive AI infrastructure spending. Mizuho Securities forecasts that major cloud providers' combined capex will exceed their free cash flow for the first time next year, forcing increased reliance on external debt. Meanwhile, S&P Global downgraded Oracle's credit rating to BBB-, just one notch above junk status, with Oracle's five-year CDS spreads widening as investors hedge AI financing risks. Meta is currently pricing financing for its $12 billion Texas data center project, with lending rates expected to exceed previous similar projects, signaling stricter investor scrutiny of AI infrastructure returns.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments