Hyperscalers transitioning to utility-like multiples
The guest argued that tech hyperscalers building out massive data center infrastructure will eventually be valued like industrial REITs or utilities.
The argument
As these companies shift capital toward heavy physical infrastructure and power procurement, their business models may lose high-growth tech characteristics, leading to compressed valuation multiples.
The thesis, stress-tested
✓ What validates it
- ✓Decline in valuation multiples for major cloud providers
- ✓Increasing share of capital expenditure dedicated to physical real estate and power generation
▸ Risks discussed
- ▸AI monetization justifying high tech multiples despite infrastructure costs
- ▸Hyperscalers successfully outsourcing physical assets to third-party REITs
Hear it yourself
"And one of the worst before maybe, Montelier goes back to January 22 is what I already have when I wanted the the industry UX. And and then, yeah, to, you know, the point then you guys just stay Now evidence in that that leans all the way back up. So I don't know if it's necessarily the taco side, but it's definitely everything in the last year where this where this is the situation where a tweet, you know, a war tariff can turn the industry kinda upside down very quickly if you're on the systematic side. And AMC signals before, it can really rehab it. But then once things kinda settle and, you know, the world isn't falling, it always seems to be coming back."
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