The End of Asset-Light
Big Tech is spending more, while each dollar of assets generates less revenue.
This edition examines how AI infrastructure spending is transforming businesses once valued for generating large amounts of revenue from a limited capital base. The report connects the shift to selected exposures, the Turbulence Index and a week in which two hyperscalers report alongside the Federal Reserve.
Big Tech is no longer asset-light. The market is still valuing it as though it were.
The report starts from a precise question: can growing contracted demand justify the scale of investment as capital intensity rises, asset turnover falls and returns compress? The answer depends on whether the new asset base can generate enough revenue, support margins and deliver adequate returns on invested capital.
Inside the report
The end of asset-light
An analysis of how AI investment is reshaping capital intensity, returns, asset turnover and cash generation across the largest technology platforms.
Stocks of the Week
A selection of hyperscalers and listed exposures with different roles in the AI infrastructure investment cycle and in the reading of the thesis.
Turbulence Index and week ahead
Cross-asset regime analysis and the events to monitor across the Federal Reserve decision, hyperscaler earnings and the main macro releases.