How much AI capex is too much AI capex?

How much AI capex is too much AI capex?

Meta Platforms [META] fell about 8.5% in premarket trading despite reporting a Q1 beat, with the decline driven by weaker guidance and a higher 2026 capex outlook of $125bn–145bn. By contrast, Alphabet [GOOGL] rose 6% after strong results, despite the fact the company also raised its 2026 capex forecast to $180bn–190bn to meet “unprecedented” artificial intelligence (AI) compute demand.

QCOM pops on AI prospects

Qualcomm [QCOM] reported Q2 EPS of $2.65, ahead of estimates, with revenue down 3.6% to $10.59bn, in line with forecasts. Q3 guidance of $9.2bn–10.0bn revenue and $2.10–2.30 EPS missed consensus. Despite this, shares rose about 11% in premarket trading on data centre optimism. The company said it has secured a “leading hyperscaler” customer and has begun shipping custom chips, with CEO Cristiano Amon highlighting progress on data centre CPUs and AI inference accelerators.

Powell: Political pressure is “battering” the Fed 

The US Federal Reserve held rates at 3.5–3.75%, in light of an inflation rate of 3.3% and uncertainty from the Iran conflict, dampening near-term cut expectations. Jerome Powell said he will remain governor until the ongoing probe concludes, while warning political pressure is “battering the institution and putting at risk the thing that really matters to the public”. Kevin Warsh’s confirmation as his successor is expected imminently.

WM is turning waste into a structural earnings engine 

Waste Management’s [WM] straightforward name befits the business. Waste removal is unglamorous, but it is also reliable: tech fads come and go, but trash abides. It may be this consistency that appeals to investors and analysts, amid macroeconomic volatility and looming fears of an AI bubble. Following on from the company’s most recent earnings call, CMC Aureon unpacks the investment case for the stock.

Could a merger redeem Twenty One Capital?

Tether has proposed merging Twenty One Capital [XXI] with Strike and Elektron Energy, Bloomberg reported, with a view to diversifying beyond its core bitcoin investment strategy, which has fallen out of favour with investors. Backed by SoftBank [SFTBY] and Cantor Fitzgerald, the company launched via a SPAC in December, holding over 40,000 bitcoin. Its shares have since dropped 31%, underperforming bitcoin’s 18% decline.

Price of NVDA hardware spikes in China

Nvidia [NVDA]’s B300 AI servers are reportedly selling for about RMB7m in China, up from RMB4m at the end of last year, as US export curbs and pressure on grey-market supply drive a sharp scarcity premium. By comparison, US pricing is around $550,000, Reuters reported. The constraints follow tighter restrictions and enforcement actions linked to partners including Super Micro Computer [SMCI].

Will these innovative biotech stocks ever turn a profit?

Twist Bioscience [TWST], Intellia Therapeutics [NTLA] and Guardant Health [GH] each sit at different points on the biotech innovation curve. The bull case across all three rests on platform scalability, expanding clinical validation and rising strategic value. However, as CMC Aureon outlines, the bear case is similarly consistent: persistent cash burn, execution risk and the long path from scientific validation to durable profitability.