Power Equipment - Korea: 2Q OP likely in line; expect strong new orders; see upside to 2H26/2027 earnings

研报英文原文证据摘录

Power Equipment - Korea: 2Q OP likely in line; expect strong new orders; see upside to 2H26/2027 earnings

Hyperscalers spending going up in 2026

See more details from: Eaton Corp PLC: 2Q26 Earnings preview: margins in focus

BofA analysts project capex by cloud service providers to rise 81% YoY to US$811bn in

2026 and 36% in 2027 to US$1,100bn (for more details see their 7/9/26 note).

Hyperscaler capex estimates continue to be revised higher. Year-to-date, 2026 capex

projections are up US$213bn and 2027 capex projects are up US$401bn.

Exhibit 6: Cloud companies to grow capex 81% y/y in 2026E Exhibit 7: Cloud capex spending (including leases)

Cloud capex spending by five largest US cloud companies BofA analysts forecast 81% y/y growth in 2026E

1,350 ($bn) Amazon Microsoft Google Meta Oracle Total

Amazon Microsoft Google Meta Oracle 2022 64 28 31 32 7 162

1,200

2023 53 41 32 28 7 161

1,050 2024 83 76 53 39 11 261

($bn) 900 2025 132 118 91 71 35 448 2026E 203 191 195 146 76 811

750 2027E 282 243 290 185 99 1,100 capex

Source: BofA Global Research, company filings

Cloud 600 BofA GLOBAL RESEARCH

2023 2024 2025 2026E 2027E 2028E

BofA GLOBAL RESEARCH

Capex sustainability: demand signals increasingly positive

See more details from: US Semiconductors: Cloud Capex Preview: through 2027 and

beyond

We see the AI capex cycle as sustainable as hyperscaler spending is increasingly

supported by: 1) frontier lab revenue acceleration, 2) contracted cloud/backlog growth,

and 3) token-intensive agentic workloads that convert usage into compute demand. A

key risk remains execution (power, data center construction, financing, and component

supply) but we see surging demand outpacing the capacity being built resulting in

sustainably strong demand in the mid-term.