Chris Wood warns AI capex binge may burn billions as markets turn against Big Tech spending
The artificial intelligence (AI) boom is entering a more unforgiving phase as investors begin questioning whether Big Tech’s unprecedented spending will generate adequate returns or merely consume billions of dollars in cash. Jefferies’ Head of Global Equity Strategy Chris Wood said markets are now responding negatively to increases in capital expenditure, a warning signal for hyperscalers that have committed vast sums to AI infrastructure. While announced results have yet to indicate an outright decline in spending, deteriorating free cash flow and sharp share price reactions suggest investor