Tech giants' AI investment worldwide; some firms’ free cash flow pressured by capex.
Tech giants’ AI investment worldwide; some firms’ free cash flow pressured by capex. August 2026: early signs of AI return on investment? August 2026: early signs of AI return on investment? Hyperscalers continue to spend, but the market is questioning the magnitude of the payoff from doing so. However, we are approaching a point where today’s investment should translate into materially stronger revenue growth. In December 2025, I wrote about what the market was looking for from the technology sector. Put simply, investors wanted evidence that the enormous investment being made in artificial intelligence (AI) was beginning to generate attractive returns. ...