GOOGLGOOGLAlphabet Inc. Class A
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P Equity Research πŸ“°P Equity Research πŸ“°
30 Sep, 22:37

Hyperscaler capex defendable via high RPO/capex ratios

Bullish-1.46%

AI Summary

Shares Bank of America's bullish thesis that hyperscaler capex remains defendable through 2028 due to large remaining performance obligations converting to revenue, highlighting strong RPO/capex ratios for major tech names.

BofA sees the cumulative capex spend of hyperscalers from CY26-28E as defendable with large RPOs awaiting to be converted into revenue. RPO/capex ratio for Microsoft for instance is 100%, and as high as 229% for Oracle. Although, the conversion depends on ability of Anthropic and OpenAI to pay on time without a struggle. $GOOGL $MSFT $META $AMZN $ORCL

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