StoneX’s 2027 estimate covers six hyperscalers plus CoreWeave and Nebius
StoneX analysts projected that six top AI hyperscalers plus the neoclouds CoreWeave and Nebius would post much wider free cash losses in 2027. Their estimate put losses across the group at more than $309 billion, compared with more than $112 billion this year, and raised questions about whether capital would be available to bridge the deficit.
“The inability to fund this free cash flow deficit over the next few years represents the single greatest concern on Wall Street at the moment, and until investors feel more confidence about funding the deficit (or willingness to fund it), chip companies with heavy exposure to the data center market may struggle to re-rate higher,” the StoneX analysts said.
Apple beat Wall Street expectations on revenue and earnings for its fiscal fourth quarter. The Wall Street Journal reported that tariffs added about 1 percentage point to Apple’s 12% revenue growth and 5 cents a share to earnings per share of $2.10. Both figures would have exceeded analyst expectations without the tariff boost, according to the report. Record-high sales in Apple’s services business and a strong showing for the iPhone also supported revenue.
Fox’s quarterly advertising revenue climbed 47%, with a 60% jump in its television segment. Fox cited the FIFA World Cup, political advertising and its streaming platform Tubi as contributors. “The World Cup and election cycle, as well as the kickoff of the college football and NFL seasons, supported strong contributions from across the company,” Chief Executive Officer Lachlan Murdoch said.
Fox’s cable-network business, which includes Fox News, Fox Sports 1 and Fox Business, recorded quarterly revenue of $1.8 billion, up 8% from the year-ago period. Fox attributed the increase to contractual price increases and growth in the average number of subscribers. Higher sports advertising revenue, including a boost from the World Cup, also contributed. Fox Corp. and The Wall Street Journal parent News Corp share common ownership.
Lumentum reported a fiscal first-quarter profit of $360.3 million, or $3.54 a share, compared with $4.2 million, or 5 cents a share, in last year’s comparable period. Excluding certain one-time items, quarterly earnings came to $4.57 a share, ahead of FactSet’s $4.22 estimate. Net revenue more than doubled to $1.26 billion.
CEO Michael Hurlston said Lumentum delivered growth across all its businesses, with pump lasers and optical circuit switches leading the contributions. “Looking ahead, we anticipate adding approximately $350 million in sequential growth in our second quarter,” Hurlston said.
Earlier in the roundup, Marvell Technology and Lumentum agreed to an all-stock transaction valued at roughly $80 billion. The companies said their complementary electrical and optical technologies could help address increasingly complex connectivity requirements across next-generation AI infrastructure. “The deal will help shape the next era of AI connectivity,” Marvell CEO Matt Murphy said. The combined company’s total addressable market was projected at $550 billion, with surging AI data traffic cited as a reason for rapid hardware innovation.
Lumentum was down 4% in premarket trading after the agreement.