Goldman Sachs: $755B by AI Hyperscalers Impacting Buybacks

Goldman Sachs published a report on May 7 highlighting a significant shift in cash allocation among large tech firms, specifically noting expected AI infrastructure spending of $755 billion by 2026. This represents an 83% increase year over year and is projected to consume nearly all cash flows from operations. Consequently, buybacks among the top five hyperscalers, including Amazon (AMZN), Alphabet (GOOGL), Meta (META), Microsoft (MSFT), and Oracle (ORCL), fell 64% year over year in Q1. As AI investment continues, Goldman Sachs forecasts buyback growth at only 3% for the S&P 500 in 2026.