From Goldman's Delta-1 Desk: Hyperscalers: This is poised to become one of the defining debates of the next few months. Markets have rarely rewarded companies allocating exceptionally large proportions of free cash flow toward capex during the build phase. This does not necessarily mean management is making poor long-term decisions; it simply means equity investors generally prefer immediate, tangible returns to distant, uncertain cash flows. Multiple expansion typically occurs during the harvesting phase, not the construction phase. The theory of reflexivity remains highly relevant in this environment. If hyperscalers continue to underperform while suppliers rally, boardrooms may increasingly question whether incremental AI investment is maximizing shareholder value. At some point, capital expenditure may slow and if one peer blinks, the market will immediately question whether others should follow.(zerohedge)