Hyperscalers face Wall Street after Iran war

Oil price sustainability above $85/barrel will correlate with hyperscaler operating margin compression of 50-100 basis points in FY2025 guidance due to elevated electricity costs

Data center energy cost concerns will cause hyperscaler stocks (NVDA, MSFT, GOOGL, AMZN, META) to underperform S&P 500 by 8-12% over the next quarter despite strong AI demand fundamentals

Hyperscaler capex guidance will be reduced by 5-15% in Q1 2025 earnings calls due to geopolitical uncertainty from Iran conflict driving higher energy costs and supply chain risks