Travis Hoium

I'm Travis Hoyum, joined today by Lou Whiteman and John Quast.

And guys, big tech took center stage this week, and the conversation was all about capital expenditures between Meta, Microsoft, Alphabet, and Amazon.

We got guidance for about $650 billion in

in CapEx for 2026.

A year ago, these companies weren't spending enough.

Now the market is saying, whoa, whoa, whoa, we're going to spend this much?

We're going to spend all of your operating cash flow?

Lou, what do we take from this week?

Because it seems like the numbers were so big that even the most bullish AI investors were shocked at how much money these companies are spending.

I want to come back to the payoff for the hyperscalers.

But John, the first thing that I want to talk is, this rising tide seems to be lifting a number of similar boats, if you will, in the supply chain.

And that is, look, if these companies are spending a ton of money, there's only a handful of companies they're going to be spending it with.

Their revenue is obviously going to go up.

Their margins are going to be good.

That's really helping a lot of those companies, at least short-term.

Are these semiconductor companies like NVIDIA, the ASMLs of the world, Micron, are these still going to be the winners, at least for the foreseeable future?

Lou, the other thing that seems to be coming into focus, at least in the market's mind, is that the disruption that we thought we were seeing coming six months to a year ago is particularly from OpenAI.

We had that huge RPO number that came out from Oracle.

I think $1.5 trillion in infrastructure to help OpenAI build out their ecosystem.

Now that's getting flooded by these other companies that have the cash to keep investing.