Fidelis Capital flags AI capex squeeze as hyperscaler free cash flow declines
Reuters2026/08/14 16:29- Fidelis Capital flagged a broadening US equity rally in 2026, with the equal-weight S&P 500 narrowly leading the market-cap benchmark.
- AI spending is pressuring hyperscaler free cash flow, with capex rising while FCF falls across the past six quarters.
- The buildout has largely been funded from free cash flow so far, raising focus on how quickly AI capex converts into earnings.
- Credit markets are increasingly funding AI, with Bank of America estimating USD 344 billion of AI-related debt issued through August.
- Nvidia outlined a USD 500 billion SPV-based financing plan to buy chips then lease them, with talks to backstop obsolescence risk.
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