2 outlets◆ MixedCapex & Expansion
Big AI reset ahead? Chris Wood doubts hyperscalers’ $990 bn capex estimates, highlights India’s reverse AI trade advantage
A capex & expansion development with market-wide reach.
25 Sept 2026 · ET Stocks, Economic Times Markets
Jefferies’ Chris Wood expects the AI investment narrative to face a major reset, questioning whether Meta, Alphabet, Amazon and Microsoft can sustain $990 billion in projected 2027 capex. He also sees Indian IT services as a potential reverse AI trade, with valuations falling even as employment remains resilient.
The analysis
Capex decisions are a bet on future demand; the market rewards or punishes them on whether the returns look credible.