New Delhi, May 2 -- The AI infrastructure spending spree by US hyperscalers is showing signs of strain, with capital expenditure now consuming nearly all of their operating cash flow, even as Dynamic Random Access Memory (DRAM) suppliers emerge as the key beneficiaries with unprecedented pricing power, global brokerage firm, Jefferies, said in a report.

According to Jefferies, the four major US hyperscalers are projected to spend 92 per cent of their operating cash flow on capex in 2026, up sharply from 41 per cent in 2023. This reflects the scale of the AI arms race, with total capex from major US tech players expected at USD 700 billion this year and USD 800 billion next year, equivalent to 2 per cent of US Gross Domestic Product (GDP)...