Massive capital expenditure by tech giants is increasingly viewed as a drain on future free cash flow rather than a sign of ambition, creating downside risk even when companies beat earnings.

"For most of the AI boom, capital expenditure was treated as evidence of ambition. Now it is increasingly being viewed as a claim against future free cash flow. A hyperscaler can beat earnings, raise guidance and still sell off if the market decides that the cost of maintaining its position is rising faster than the reward."