Matthew Bloxham on Alphabet's $80B equity raise, HPE, and SK Hynix capacity (with Matt Miller)

Asks about Alphabet's $80B equity raise being unprecedented and how investors will react.

Matt Miller

Matthew Bloxham

$80B is huge but Google's capex is 180-190B this year, heading to 300B next year. They generate ~175B cash flow annually, need to tap markets to stay competitive. They've tapped debt markets for $85B, now equity markets turn.

Alongside SpaceX $75B and potential Anthropic/OpenAI IPOs, big demands on public markets.

Asks if more at-the-market offerings will follow, noting Google's forward PE under 30.

Matt Miller

Matthew Bloxham

Other big tech companies watching closely. All hyperscalers in huge investment round; equity markets need to fund this. Companies must deliver strong top-line growth to keep confidence in AI opportunity.

They've looked at private investment, tapped debt markets, now equity markets.

Asks about HPE's huge gains and sales guidance topping estimates.

Matt Miller

Matthew Bloxham

HPE guiding 31% revenue growth this year vs market expectation of 19%, and 10% for 2027 vs 5%. Unusual to guide 18 months out but shows enduring demand. AI transitioning from training (Nvidia GPUs) to inference using CPU-based servers where HPE and Dell excel.

Dell posted strong numbers last week; consistent story of growing demand for CPU-based inference servers.

Asks about SK Hynix doubling memory production capacity over five years.

Matt Miller

Matthew Bloxham

Doubling is huge; memory market historically cyclical. Risk of supply glut but deployment likely gradual. Also preemptive/protective: if customers don't see capacity investment, they may develop own capabilities or shift to less memory-intensive tech.

Tapping into opportunity but also signaling 'we are your supplier of choice for next five years.'

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