“Jefferies remains constructive on the AI investment cycle despite near-term financial pressure on hyperscalers, projecting aggregate debt to rise and free cash flow to fall by 2026. This bullish stance is driven by customer commitments growing faster than investments, strong cloud growth and operating cash generation, and improving AI infrastructure economics, with cloud operating margins expanding for four consecutive quarters.”

Jefferies Analysis’s track record: 3 graded calls · 95% CI 44–100%