Raoul Pal Says AI Spending Has No Ceiling. Are Tech Stocks in Danger?

On Oct. 27, 2026, Real Vision CEO Raoul Pal argued that major tech firms have the financial capacity to fund AI-related construction for the foreseeable future, citing debt equal to 3.5% of their stock-market value and likening the expansion to the 35-year railroad boom. In recent earnings, Alphabet’s quarterly free cash flow fell to negative $9.07 billion as AI investments rose, while Microsoft reported $18.6 billion in positive free cash flow. Amazon expects about $220 billion of 2026 spending and Alphabet has budgeted up to $205 billion. Union Bancaire Privée estimates five major hyperscalers will spend $820 billion in 2026, above projected $750 billion operating cash flow, and the Bank of England has warned AI infrastructure increasingly relies on borrowing.