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Apple’s AI approach contrasts with slowing momentum in hyperscaler spending
UBS estimates hyperscalers’ capex is set to rise 76% to $673 billion this year, then slow sharply to 25% next year and 6% in 2028.
Yahoo Finance reports the AI chipmaker rally is starting to lose momentum, as investors question whether hyperscalers can earn returns large enough to justify their heavy investments across a nearly $1 trillion AI spending cycle.
According to UBS estimates cited by Yahoo Finance, hyperscalers’ capital expenditures are expected to jump 76% this year to $673 billion, but growth is projected to slow to 25% next year and only 6% in 2028. With many hyperscalers shifting from self-funded buildouts to external financing, the outlet says that creates potential capital-market pressures and puts spending growth under scrutiny.
Yahoo Finance also points to competitive pressure from lower-cost AI development in China, citing the launch of Moonshot AI’s Kimi K3, a 2.8-trillion-parameter model. The outlet says cheaper AI over time could reduce pricing power for proprietary AI services, while cloud providers and model developers may face harder-to-sustain returns on costly infrastructure investments.
Against that backdrop, Yahoo Finance highlights Apple Inc. as a contrast, leaning more on on-device AI rather than the massive data center spending tied to hyperscaler capex. The outlet notes that on July 17, Apple briefly unseated Nvidia and became the world’s most valuable company, reclaiming the top spot for the first time since April of last year.