NVIDIA and Micron absorb capital as Amazon, Alphabet, and Microsoft face first-ever combined negative free cash flow.
NVIDIA and Micron Technology are capturing capital as hyperscalers like Amazon, Alphabet, and Microsoft project their first combined negative free cash flow. The shift reverses a $260 billion peak in 2024, signaling a generational transfer of investment dollars toward semiconductor firms.
Bank of America forecasts NVIDIA, Micron, Broadcom, and Applied Materials will generate a record $430 billion in free cash flow over the next 12 months, more than triple their output from two years ago. Meanwhile, Micron reported $41.46 billion in revenue, up 345.7% year-over-year, with earnings per share of $25.11, surpassing estimates.
The divergence highlights a broader rotation from cloud giants to chipmakers, driven by AI demand and semiconductor supply chain dominance. Hyperscalers’ capex slowdown contrasts with record-high cash generation in the chip sector.