Technology / Semiconductor / Internet Research

Nicolas Baratte

Nicolas Baratte has been a financial analyst since 2000, covering the Semiconductor sector and Global Technology. Nicolas has worked on the sell-side for JPMorgan, CLSA. On the buy-side for a Tiger fund and Prudential. Nicolas has covered semiconductors, Asian hardware and components, and the Global Tech supply chain. Nicolas lives mostly in Taiwan, sometimes in France and is in New York regularly.

Alphabet Q1 2026. Enterprise AI Demand Now The Primary Growth Driver For Google Cloud

Hyperscalers: Consensus Revisions and Valuations Post Earnings. Best Growth Stocks: GOOG and AMZN

Hyperscalers: What Is Consensus Forecasting? Good or Bad? How Much Capex Can They Spend?

Is Software Getting Cheap? De-Rating, but Not Cheap. Hyperscalers and Some Fintech More Interesting.

Hyperscalers: Is AI Capex Too High? What’s AI Return on Investment?

Equity Bottom-Up

<ul>
<li>In aggregate, the 4 hyperscalers reported excellent results. Revenue growth is accelerating. Cloud growth is accelerating. Margins are increasing. Which in turns translates into higher Capex.</li>
<li>Capex growth (65% in 2025 and ~100% in 2026) will remain way above revenue growth (15% and ~20%) and operating profit growth (17% and ~25%). </li>
<li>Consensus remains desperately too low on growth, margins, capex. Consensus will revise up. This doesn’t remove the concern above, but can support share price momentum.</li>
</ul>


In aggregate, the 4 hyperscalers reported excellent results. Revenue growth is accelerating. Cloud growth is accelerating. Margins are increasing. Which in turns translates into higher Capex.
Capex growth (65% in 2025 and ~100% in 2026) will remain way above revenue growth (15% and ~20%) and operating profit growth (17% and ~25%). 
Consensus remains desperately too low on growth, margins, capex. Consensus will revise up. This doesn’t remove the concern above, but can support share price momentum.


Hyperscalers: Excellent 1Q26! Higher Revenue Growth, Margins Expansion Supporting Higher Capex