The race among the “Magnificent Seven” tech giants to construct large AI data centers is having an unforeseen effect on share buybacks, a recent Goldman Sachs report reveals.
AI Data Center Push Slows S&P 500 Buybacks In 2025
The Magnificent Seven — Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:FB), and Tesla (NASDAQ:TSLA) also known as “hyperscalers,” have diverted significant funds towards building AI data centers, leading to a slowdown in share buybacks.
Companies usually boost their buyback activity by roughly 20% each year, but S&P 500 buybacks have slowed down in the latter half of 2025, noted Goldman’s Ben Snider and his team, reported Fortune.
“The 2Q earnings season reaffirmed the ongoing corporate focus on AI investment spending, which appears to be crowding out buybacks … S&P 500 companies reported 24% year/year capex growth during the quarter but reported -1% growth in gross buybacks,” noted Snider.
The …
Full story available on Benzinga.com
The race among the “Magnificent Seven” tech giants to construct large AI data centers is having an unforeseen effect on share buybacks, a recent Goldman Sachs report reveals.
AI Data Center Push Slows S&P 500 Buybacks In 2025
The Magnificent Seven — Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:FB), and Tesla (NASDAQ:TSLA) also known as “hyperscalers,” have diverted significant funds towards building AI data centers, leading to a slowdown in share buybacks.
Companies usually boost their buyback activity by roughly 20% each year, but S&P 500 buybacks have slowed down in the latter half of 2025, noted Goldman’s Ben Snider and his team, reported Fortune.
“The 2Q earnings season reaffirmed the ongoing corporate focus on AI investment spending, which appears to be crowding out buybacks … S&P 500 companies reported 24% year/year capex growth during the quarter but reported -1% growth in gross buybacks,” noted Snider.
The …
Full story available on Benzinga.com
The race among the “Magnificent Seven” tech giants to construct large AI data centers is having an unforeseen effect on share buybacks, a recent Goldman Sachs report reveals.
AI Data Center Push Slows S&P 500 Buybacks In 2025
The Magnificent Seven — Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Meta (NASDAQ:FB), and Tesla (NASDAQ:TSLA) also known as “hyperscalers,” have diverted significant funds towards building AI data centers, leading to a slowdown in share buybacks.
Companies usually boost their buyback activity by roughly 20% each year, but S&P 500 buybacks have slowed down in the latter half of 2025, noted Goldman’s Ben Snider and his team, reported Fortune.
“The 2Q earnings season reaffirmed the ongoing corporate focus on AI investment spending, which appears to be crowding out buybacks … S&P 500 companies reported 24% year/year capex growth during the quarter but reported -1% growth in gross buybacks,” noted Snider.The …Full story available on Benzinga.com Read MoreAAPL, AMZN, FB, GOOG, GOOGL, Large Cap, MSFT, News, NVDA, TSLA, Buybacks, Markets, Tech, AAPL, US0378331005, AMZN, US0231351067, GOOG, US38259P7069, MSFT, US5949181045, NVDA, US67066G1040, TSLA, US88160R1014, FB, GOOGL, US38259P5089, News, Large Cap, Buybacks, Markets, Tech, Benzinga Markets
