Bits, Broadcasts & Bandwidth: Weekly Investment Grade TMT Review

Research evidence excerpt

Bits, Broadcasts & Bandwidth: Weekly Investment Grade TMT Review

nounced an additional share repurchase program,

arguing that the current valuation offers a more attractive use of excess capital than

further debt reduction while maintaining its existing capital structure. Strategic

commentary focused on organic investment rather than M&A, with management

dismissing speculation around larger transactions while remaining constructive on

European mobile consolidation. Management also said AI has yet to meaningfully

increase mobile traffic but expects AI applications and continued 5G adoption to

drive long-term demand for network densification and higher-quality infrastructure.

It reiterated that direct-to-device satellite services are complementary to terrestrial

networks and highlighted supportive European regulation for AI-ready networks and

5G deployment.

• Equinix (EQIX): posted a solid 2Q report and raised both its FY26 and long-

term outlook as stronger demand, accelerating bookings and the AI infrastructure

cycle continue to exceed expectations. Management argued that AI is accelerating

broader enterprise modernization, with growing demand for inference workloads,

larger deployments, firm pricing and continued strength in interconnection, while

emphasizing that its global platform and ecosystem position it to capture a

disproportionate share of AI infrastructure spending. To support this demand,

Equinix has increased its near- and long-term capital investment plans, with most

incremental capacity focused on existing high-demand metros where it expects

attractive returns. Management noted that leverage will increase modestly as growth

is funded through retained FCF and incremental debt while reaffirming its

commitment to IG ratings.