Wall Street Thinks AI Capex Is Unsustainable -- Here's Why Big Tech Keeps Spending Anyway
Is AI fatigue setting in?
Overview
There's never been an infrastructure boom like AI.
Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Meta Platforms (NASDAQ: META) are set to spend around $700 billion this year in capital expenditures this year to build out data centers to support demand for AI applications.
Details
That's a number that significantly exceeds annual profit for the group, and Wall Street is starting to get nervous. The latest news from Micron, confirming that memory prices have soared, hasn't helped the cause.
Source
Originally published at www.fool.com.
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