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Hyperscaler capex looks better when compared to AT&T’s Depression spending. (0:15) Intel gains after SK hynix partnership report. (2:08) Inspire Brands preps for one of history’s largest restaurant IPOs. (2:45)

This is an abridged transcript of the podcast:

Our top story so far, Wall Street is increasingly nervous about hyperscaler capex.

The combined capital expenditure of Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOG) (GOOGL), and Meta (META) was just over $200B in 2024. Two years later it is on track to approach $700B. Free cash flow at those four companies slipped to about $200B last year, down from $237B in 2024, as the AI build-out accelerated.

The question investors are asking: what happens if the economy turns? History offers a partial answer from an unlikely source.

By 1930, AT&T’s (T) Bell System was spending $585M annually on construction — the largest private infrastructure program in American history. Then the Depression hit. GDP collapsed, unemployment reached 25%, and corporate America retrenched. Bell did not.

Telephone installations declined, but infrastructure investment continued. The dividend held at $9 per share from 1929 to 1942 — uninterrupted through the worst economic catastrophe in U.S. history.

The mechanism was simple: stopping was more dangerous than continuing. A network only has value if it keeps expanding. The moment Bell stopped building, it risked losing the monopoly logic that justified its existence.

That logic has a modern echo.

Amazon CEO Andy Jassy recently described AI as “a once-in-a-lifetime opportunity where the current growth is unprecedented and the future growth even bigger.” That’s less a growth forecast than a statement about competitive risk. Hyperscaler capex now amounts to roughly 2.2% of U.S. GDP, and executives have been clear: the danger is not over-investing but being under-invested when the cycle matures.

Bell’s Depression-era record does not guarantee hyperscaler resilience. Bell was a regulated monopoly with guaranteed returns. Today’s hyperscalers operate in an arms race — with each other, with China, and with well-funded challengers. The incentive to keep spending remains. The financial cushion is thinner.

When the infrastructure logic is strong enough, capex becomes the last line item to cut — not the first.

Among active stocks, Intel (INTC) rose after ZDNet Korea reported it is working with SK hynix (HXSCL) to use Intel’s Embedded Multi-die Interconnect Bridge technology. SK hynix also jumped in Seoul, with the report noting the company is conducting R&D on 2.5D packaging.

Moderna (MRNA) extended gains following Friday’s 12% rally after disclosing early-stage research on vaccines targeting hantaviruses.

And Mosaic (MOS) is under pressure after missing Q1 adjusted earnings expectations, withdrawing its annual phosphate production forecast, and saying it will limit capital spending as surging sulfuric acid prices weigh on operations.

In other news of note, restaurant conglomerate Inspire Brands is positioning for one of the largest restaurant IPOs in history. The Roark Capital-owned company has filed confidentially with the SEC.

Founded in 2018 after Arby’s acquired Buffalo Wild Wings, Inspire expanded rapidly through acquisitions including Sonic Drive-In, Baskin-Robbins, Dunkin’, and Jimmy John’s. Dunkin’, Arby’s, Jimmy John’s, and Sonic all ranked among the top 30 U.S. chains by systemwide sales in 2025, according to QSR.

The company operates more than 33,000 restaurants across all 50 states.

Roark is reportedly targeting a valuation of roughly $20B, which would make Inspire the seventh largest publicly traded restaurant company by market cap.

And in the Wall Street Research Corner, Lux Capital co-founder Josh Wolfe pitched Nvidia (NVDA) back in 2016, arguing the narrative would shift from gaming to simulation and AI.

Now he has a new conviction call: “lifecording.”

The thesis is that a wave of wearable devices will record daily life — starting with audio, then video and images — while AI continuously processes, summarizes and surfaces connections.

“Wall Street doesn’t have a name for this yet,” Wolfe posted. “That’s the opportunity.”

Rather than betting on device makers, he recommends backing the component suppliers that win regardless of which platform dominates — what he calls an “arms dealer” trade.

Names he highlights include Nordic Semiconductor (NDCVF) (NRSDY), TDK (TTDKY) and Himax Technologies (HIMX).

Check out all the names in our story.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.