JPMorgan estimates publicly listed technology companies will generate about $2.2 trillion in operating cash flow this year against roughly $1.8 trillion in combined capital expenditure and research spending, leaving a $400 billion surplus to support AI infrastructure, BlockBeats reported.
JPMorgan sees neocloud funding gap as manageable
The report estimated that neocloud companies would generate about $30 billion in operating cash flow while spending roughly $80 billion on capital expenditure and research. If their funding gap grows, larger cloud providers with stronger balance sheets could take over related demand, according to the report.
JPMorgan said some technology financing needs stem from large share buybacks, which companies could reduce to preserve AI investment. It also said overall equity positioning had fallen from a mid-September high and trend-following investors’ semiconductor longs were largely absorbed, narrowing the market’s near-term downside.
BlockBeats attributed the figures and outlook to a JPMorgan report, but the flash did not provide the report’s title, link or underlying data.