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But we saved everything 🙂.
Depreciation and amortization expenses for the five leading hyperscalers are projected to reach $590 billion in 2029, a level that is likely to exceed their combined operating profits in 2026.
Peter Berezin shared this estimate, highlighting the significant scale of future expenses relative to profits for these technology companies.
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Berezin previously described how Nvidia's profits have benefited from treating GPU purchases as capital spending, which raised reported earnings levels in the sector. In another recent note, he identified rising government debt and concerns about pension obligations in France, as debt surpassed 100% of GDP. Both developments reflect Berezin’s ongoing focus on corporate and government financial pressures.