There are two prevailing narratives regarding this Capex explosion: The Cloud Provider Logic (AMZN, GOOG, MSFT) Their infrastructure spending is backed by actual B2B customers. As long as the cloud market expands, this Capex builds a massive competitive moat. The Consumer Monetization "Ghost Story" (META, AAPL, TSLA) These companies must recoup their AI billions one or two dollars at a time from individual consumers. If the "AI killer app" for consumers doesn't materialize, this Capex becomes a heavy drag on the balance sheet.
Before looking ahead, let’s review how the three local giants diverged in 2025—a key factor driving current market sentiment: DBS surged 28%. Fueled by high dividend visibility and a boom in its wealth management segment, it was the undisputed market leader. OCBC rose 19%. Investors were optimistic about its wealth management prospects and potential for further capital returns. UOB fell 4%. The laggard of the group, weighed down by earnings disappointments and concerns over asset quality (particularly US and Greater China real estate exposure).