Hyperscalers' bonds to fuel capex offer institutional investors an attractive 100-180+ basis point yield premium over Treasuries, meaning marginal balance sheet capacity is being funneled away from government debt auctions. $MSFT $AMZN $GOOG $ORCL

Hyperscaler debt is soaring: Amazon $AMZN, Alphabet $GOOGL, Microsoft $MSFT and Meta $META have sold over $200 billion of bonds so far in 2026, a record that more than doubles last year's $78 billion. The pace has accelerated sharply from the prior decade, when the four rarely issued more than $30 billion combined in a full year. The debt is funding a surge in AI infrastructure spending, from data centers to chips, and 2026 is only year to date. Combined capex guidance for the four now runs near $700 billion this year. Cash flow no longer covers it, Amazon's spending ran to 102% of operating cash flow over the trailing year. The buildout now runs near 2% of U.S. GDP, and by some estimates accounts for about a third of this year's growth. The debt is how they're funding it.

Hyperscale data centers are basically resource extraction mega-machines that invade communities, take their water, farm land and power grid capacity, while leaving groundwater drained and local ranchers and farmers high and dry within just few years. It's basically a resource pillaging operation, and it will leave American families destitute in its wake. I have a full, detailed report on the scale of this publishing Thursday.

Hyperscaler capex will 2x in 2027 to ~$1.6 trillion (up from ~$800 billion this year) per recent reports. Demand for AI compute is incredible...even though stocks aren't reflecting it currently. However, given the widening supply-demand inbalance, bottlenecks like power, memory and optics will deepen. Ultimately meaning that companies like $BE, $MU, and $LITE will report astounding growth next year. Share prices are bound to follow upwards. Time will tell!

Hyperscaler capex is set to hit $1.3 trillion in 2027 as cloud industry backlogs top $2 trillion, according to Nvidia CFO Colette Kress. To capitalize on the surge, the company is expanding its long-standing partnership with AWS to scale its compute footprint even further.

Hyperscalers burning billions in cash is extremely bullish for semiconductor stocks over the next 12 months. I sat down with @JackFarley96 to go through his new model portfolio and high-conviction trade ideas, the short trades he likes right now, the risks in AI pricing power, and what comes next for hyperscalers. Jack has very nuanced views that combine a near-term bull case and long-term risk for a potential crash. This is a fun conversation full of actionable ideas. TIMESTAMPS: 0:00 - Bull market's 5th year? 3:30 - Hyperscaler capex 5:04 - Free cash flow concerns 6:47 - AI pricing power 9:43 - Semiconductor pricing power 11:59 - Favorite sectors 14:02 - $LRCX 18:13 - Could China crash memory? 20:37 - Short ideas 22:09 - Silver bull case 26:11 - Macro risks 27:55 - Jack's model portfolio 28:54 - Texas Pacific Land 30:28 - Sulfur stock idea 32:24 - $EWY 34:57 - Shorting ethereum:0x294559fa758c88d639fd085751e463fee7806eab 35:52 - Follow Jack