CITIC Construction Investment: North American cloud vendors' capital expenditures continue to grow rapidly; focus on oversold computing power and high-dividend targets.

CITIC Construction Investment pointed out that in the second quarter of 2026, the capital expenditures of leading cloud companies in North America continued to grow at a high rate. The capital expenditure guidance of four North American cloud companies for 2026 totals approximately $72 billion to $74.5 billion, reflecting that North American cloud companies are still continuously expanding around AI infrastructure. Currently, the prosperity of the AI computing power industry chain remains, but the market has recently shown significant adjustments. CITIC Construction Investment believes there is an overshooting situation. In the future, it is recommended to keep an eye on: First, the growth of ARR for large models, especially the ARR in coding scenarios. After all, large models in North America have recently been discounting, and if the ARR growth encounters a bottleneck in the short term, it may affect the market's expectations for future computing power demand; Second, the implementation and development of large models in other application scenarios beyond coding; Third, the price trend of the computing power inflation chain in the coming period; Fourth, the financing situation of each link in the AI industry chain and the market's risk preference. Additionally, given that the AI industry chain had heavy positions in the second quarter and the market has recently adjusted, showing signs of high-low rotation, it is advised to focus on undervalued, high-dividend stocks.