Wall Street bank Goldman Sachs has issued a warning for tech titans like Amazon.com Inc.
(NASDAQ:AMZN) and Microsoft Corp.(NASDAQ:MSFT), noting that their Return on Equity (ROE) faces severe downward pressure as massive artificial intelligence capital expenditures trigger escalating "depreciation expenses." The Cost Of The Capex Boom According to Goldman's portfolio strategy report, the physical footprint required to support massive AI workloads is rapidly forcing these historically asset-light hyperscalers to become capital-intensive enterprises.
Consensus estimates show that AI hyperscalers—including Amazon, Microsoft, Alphabet Inc.
(NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms Inc.
(NASDAQ:META), and Oracle Corp.
