Part 4/15:
The market's fears are partly justified but often overlook some crucial nuances. While capital expenditures (CapEx) on AI are soaring—Google’s CapEx nearly doubling from last year—their return on invested capital (ROIC) remains healthy: Google stands at 27.5%, Microsoft about 22%, and Amazon around 13.5%. These figures indicate that, despite high investment levels, these companies are still managing to generate solid returns, justifying their strategic shifts towards AI and infrastructure expansion.