In terms of hyperscaler performance, have we moved past how much capex are they spending to how much free cash flow are they generating? Despite a robust outlook with Mag-7 earnings expected to climb about 34% this year, above the 29% pace of the S&P 500, according to Bloomberg Intelligence data, and 27% in 2027, a consensus that has moved up aggressively in recent weeks (two months ago, analysts were anticipating an increase of less than 19%), the Bloomberg Magnificent Seven Index is up just 6.5% this year, well below the 11% rise in the S&P 500 Index and the 15% rise in the tech-heavy Nasdaq 100 Index. “If we get another scenario where we have to lower FCF expectations, that will elevate concerns about the durability of AI spending and the reliance on incremental capital, and that will flow down to the neoclouds and other parts of the market as well,” said Kevin Shea, senior equity analyst at BNY Wealth. “However, if we can get positive revisions to FCF, the market will breathe a sigh of relief that we’ve reached the bottom for negative revisions and that we’re through the most difficult part of the spending cycle.”