Chinese tech giants sharply increased AI capital expenditure in Q2 2026, driven by inference demand and chip availability. However, Jefferies sees greater sustainability risks in US cloud spending, highlighting rising capex relative to revenue and the challenge of monetising AI infrastructure investments.

Jefferies remains bullish on Big Techs $1-trillion AI investment despite near-term financial pressure. Rising customer backlogs, strong cloud revenue, and improving infrastructure…

US hyperscalers committed over $650B for AI data centers in 2026, but critical dependence on Chinese transformers and optical components