PremiumBy Tatiana Darie, Bloomberg Markets Live reporter and strategistHyperscalers’ free cash flows are expected to shrink significantly in the coming quarters, with three of the top four expected to run out of cash by year-end. The BofA chart below (source) is a stunning reminder of the "generational transfer" in free cash flow taking place at the moment.
"Generational Transfer Is Taking Place": The Cash Crunch Is Coming For AI Hyperscalers
"As the big tech Goliaths run out of cash, they’ll wade more into capital markets, in most cases taking on more debt or diluting equity shareholders. None of this will be taken lightly by investors, which raises the stakes for earnings even more."
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