Hyperscaler capex crackdown: 11 of 16 AI stocks down 19%+, GOOGL RSI 15.6
pdamodaran · x · 2026-10-30
Sharing DalalBytes' technical map of hyperscalers and semis, the author argues the market isn't punishing AI but capex without visible cash returns. SPY sits just 1.6% below its high while 11 of 16 AI names are 19%+ off their 52-week highs; Oracle and Arm are down 50%. Alphabet fell 12.64% in a day (RSI 15.6) after a $51.4B capex quarter with negative free cash flow for a second straight quarter, while Microsoft was rewarded for 48% Azure growth on disciplined spend. Only GOOGL and META print RSI under 30; AMZN closed near its 200-day at $243.38. High-capex names stay pressured until cash flow turns.
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