# Tech stock investors have a $1 trillion problem that won't improve until at least 2028 > Source: > Published: 2026-08-03 12:09:18+00:00 Tech investors hoping for less robust AI spending may have to wait until 2028 before the fog begins to lift on this balance sheet line item. **Quick analysis: **Consensus estimates for 2026 hyperscaler capital expenditures have been raised by a modest $36 billion since the start of the reporting season, according to new research from Goldman Sachs strategist Ben Snider. But 2027 capex estimates have jumped from $929 billion (23% annual growth) to over $1 trillion (33% annual growth) over this period. This is more than $100 billion above estimates heading into the quarter, Snider pointed out. What's more, capex stands to exceed cash flow from operations from 2026 through 2028. **The finer details:** The reaction to large-scale capex by the hyperscalers has been rough for the bulls. Meta ([META](https://finance.yahoo.com/quote/META/)) raised the bottom end of its 2026 capital expenditure target, tightening the full-year spending range to $135 billion to $145 billion (up from $125 billion to $145 billion). But specifics about 2027 capital expenditures were nonexistent. "We aren't providing a specific outlook for 2027 capex at this time," Meta CFO Susan Li told analysts on a late-Wednesday earnings call. "Infrastructure planning remains highly dynamic. Even this year, there are a range of outcomes embedded in our outlook." Meta's stock is down 7% over the past five days, and 14% for the year, per [Yahoo Finance AlphaSpace](https://finance.yahoo.com/about/promos/gold/alphaspace?100003557) data. [Alphabet's second quarter capital expenditures](https://finance.yahoo.com/video/earnings-negative-cash-flows-make-big-tech-more-economically-sensitive-140918058.html) came in at $44.9 billion, slightly above Wall Street forecasts of $44.7 billion. Full-year capex guidance was raised to $195 billion to $205 billion from $180 billion to $190 billion, with a "significant" increase seen for 2027, executives said on the earnings call. Shares of Alphabet were crushed in response to its earnings report. **The bottom line: **Free cash flow is king for the hyperscalers right now, and only Microsoft ([MSFT](https://finance.yahoo.com/quote/MSFT/)) has a good story to tell there in the near term. *Brian Sozzi** is Yahoo Finance's Executive Editor, host of the '**Power Players With Brian Sozzi'** podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X** @BrianSozzi**,** Instagram**, and** LinkedIn**. Tips on stories? Email brian.sozzi@yahoofinance.com.* **Click here for in-depth analysis of the latest stock market news and events moving stock prices** **Read the latest financial and business news from Yahoo Finance**