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Big Tech's AI spending cuts stock buybacks, Goldman Sachs sees only 3% S&P 500 buyback growth in 2026

Market News
10 May 2026
Market Watch
View Source
Bearish
pluang ai news

Big Tech companies like Amazon, Alphabet, Meta, Microsoft, and Oracle are increasing their AI-related capital expenditures by 83% to $755 billion in 2026. This surge in spending on data centers and AI infrastructure has led to a nearly two-thirds reduction in stock buybacks in the first quarter. Goldman Sachs expects overall S&P 500 share buybacks to grow only 3% this year due to economic uncertainty and rising AI costs. This shift means investors may see fewer dividends and buyback-driven returns as companies prioritize AI investments.

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