Wall Street expects SI spending to exceed hyperscalers' cash flow in 2027
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
The SI infrastructure build-out will soon run into money, so its pace will depend on credit and on whether the investments pay off.
According to Fortune, analysts expect that around 2027 the capital expenditure of the big cloud companies will for the first time exceed their operating cash flow. In 2026 the capex of Oracle, Microsoft, Amazon, Meta and Alphabet will exceed their combined operating cash flow for the first time. Stijn Van Nieuwerburgh (Columbia Business School) says internal cash is "no longer sufficient" without outside capital; Ohsung Kwon (Wells Fargo) thinks the market may regard 2027 as a "potential peak year" after third-quarter earnings; Pantheon Macroeconomics expects hyperscaler capex growth to "moderate in 2027" because of supply constraints and costly borrowing, and growth to "slow meaningfully in 2028".
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