U.S. AI Hardware Sector Plunges on July 27; Hyperscaler Capex Forecasts Revised to $950.2B by 2027

According to Citic Securities, the U.S. AI hardware sector plunged overnight on July 27, with the Philadelphia Semiconductor Index falling 2.2%, SanDisk dropping 11%, and SK Hynix declining 7.5%. The selloff reflects market repricing of Hyperscaler capital expenditure expansion and financing risks, rather than deterioration in AI demand fundamentals.

Market expectations for combined Hyperscaler capital expenditure were revised to $731.9 billion in 2026 and $950.2 billion in 2027, up 1.9% and 5.6% respectively from June forecasts. The upward revision signals stronger-than-expected AI infrastructure investment intensity and duration. Core concerns center on Nvidia's circular financing model—providing guarantees and credit support to downstream customers for chip purchases—alongside Nvidia-HyperX deals valued at $500 billion and potential $250 billion financing arrangements with OpenAI. However, AI chip rental prices remain stable and capital raise channels remain diversified across equity, public bonds, and private debt.