Drewski

BREAKING: 331 S&P 500 companies mentioned AI during their Q2 2026 earnings calls, the 3rd-largest reading on record. This figure has more than quadrupled since Q3 2022. This also marks the 4th consecutive quarter in which more than 300 companies have mentioned AI. Not surprisingly, 97% of Information Technology firms mentioned AI during their Q2 earnings calls. Financials and Communication Services followed, at 91% and 90%, respectively. Only Utilities, Materials, and Consumer Staples had fewer than half of companies mentioning "AI." AI is dominating corporate conversations.

We are witnessing the largest CapEx spending spree in history. Hyperscalers have committed a record $2.6 trillion in future spending across data center leases and equipment purchases. This includes leases for data centers and power infrastructure that have not yet commenced, and existing purchase contracts for equipment and services. These obligations do not appear on company balance sheets and are disclosed only in limited accounting footnotes, despite their enormous size and duration. Alphabet, $GOOGL, has the largest total, with $811 billion in purchase commitments and $85 billion in leases not yet commenced, bringing its combined obligations to ~$896 billion. By contrast, Oracle, $ORCL, has committed $32 billion to purchases, but $260 billion to leases that have not yet commenced, the largest lease obligation among the group, bringing its total to ~$292 billion. The AI buildout has become one of the largest long-term capital commitments in corporate history.

The entire market expected President Trump to de-escalate the Iran War. That did not happen. Minutes later, the 10Y Note Yield is back on its way to 4.40%+. We expect significant volatility ahead.