"Banks Are Choking": The AI Debt Bubble Has Started To Burst

Last Wednesday's hyperscaler results, where over $12 trillion in market cap reported Q1 results within one hour, were mixed but there was one clear take home message: capex projections (if not so much actuals) are soaring, and following the updated capex plans, Morgan Stanley raised its 2026 full year capex total to $800 billion in capex spending for the Big 5 (AMZN, GOOGL, META, MSFT and ORCL), rising to over $1.1 trillion in 2027.