Part 1/10:
The AI Capex Conundrum: Understanding Recent Tech Earnings
Over the past few weeks, a notable selloff in AI stocks has rattled investors, primarily fueled by the increasing perception that advancements in artificial intelligence may lessen the need for expensive compute resources and high-capex infrastructure. However, recent earnings reports from leading hyperscalers—Microsoft, Google, and Amazon—suggest that significant investment in AI infrastructure remains a priority.