Capital Expenditure

Capital expenditure refers to long-term corporate investment in plants, equipment and infrastructure, and can indicate an industry's expectations for future demand. Recent demand for AI and high-performance computing has prompted TSMC and Nanya Technology to expand capacity, while Amazon is also issuing debt to increase investment in data centers, with key components such as DRAM becoming spending priorities. At the same time, the market is beginning to scrutinize the risks of excess AI capacity, overly concentrated investment and uncertain returns on data centers. Tracking capital expenditure can help gauge the semiconductor cycle, corporate earnings and whether the AI investment cycle will continue.