1201 ET - BCE's new venture into AI infrastructure raises questions about its capex which is already high. TD Cowen's Vince Valentini notes in a report that the first facility is meant to come online in June, which means the capex investment has been under way for some time, and should be embedded in 2025 guidance of roughly C$3.3 billion to C$3.5 billion. "This gives us confidence that BCE knew about the DC project when it recently committed to peak capital intensity of near 14.5% over the next few years," he says. However, there is the chance that it wasn't, and Valentini says "if this is a new J-curve capex investment that will increase the 14.5% guidance, then we would expect a negative reaction from investors." (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
May 28, 2025 12:01 ET (16:01 GMT)
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