Amid the seesaw market frenzy over artificial intelligence, Jefferies' Global Head of Equity Strategy, Chris Wood, cautioned that the stock market may soon begin to push back against the significant spending by Wall Street's hyperscalers, which he predicts will be "massive capital destruction".
In his latest 'Greed & Fear' report, Wood highlighted that the four major US hyperscalers, including Microsoft, Facebook-parent Meta, Amazon and Google-parent Alphabet, have issued bonds worth $144 billion so far this year, compared with $83 billion in the entire 2025. The shares of these four hyperscalers, meanwhile, have rallied up to 180% since the beginning of 2023, outperforming the S&P 500 index by 44%.
