AI capital expenditures surge or end the "buyback era" of US stocks. Nomura strategist warns it may lead to an "effective tightening" in reality.

According to the Wisdom Financial APP, the stock buyback wave on the U.S. stock market, which has lasted for more than a decade, is facing the risk of being "squeezed out" by Artificial Intelligence (AI) capital expenditures. With the competition among tech giants in the field of AI becoming increasingly fierce, the free cash flow that companies use for stock buybacks may be consumed by the costs of investing heavily in data centers, chips, and model training.