This winter’s 2026 hyperscale earnings prints from Meta, Microsoft, Alphabet and Amazon made it quite clear that CapEx is accelerating. Combined these four firms will spend more than $615B in CapEX this year, an increase of approximately 70% over what was already considered an inflated 2025. Despite strong fundamental AI and general purpose computing demand, this news caused significant concern for market watchers because the aggressive spending has murky payoffs. Coupled with the Anthropic-infused SaaS attack, investors took stocks down for most of the week, including Nvidia. Confusingly, much of the CapEx spend is going to Nvidia - perhaps as much as 60% of the AI portion of the CapEX will go to that company - a point investors seemed to overlook. Notably, the market is bouncing back today (Friday) after this week’s earlier rout.