Big tech spending hundreds of billions on AI, Nvidia profits surging — ride the supercycle
The four biggest tech companies are preparing to spend an unprecedented amount on AI infrastructure. JPMorgan says this spending is fueling an 'earnings supercycle' that will push stocks to new highs, and Nvidia has already booked nearly $20 billion in profit from the boom.
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Meta, Microsoft, Amazon, and Alphabet are collectively pouring hundreds of billions into AI data centers and chips — and Nvidia is the company selling them the picks and shovels, booking $20 billion in profit in just five months. JPMorgan's strategist calls this an 'earnings supercycle,' meaning company profits are accelerating across the board, not just for one or two names. When the biggest spenders in tech commit this kind of capital, the equipment suppliers like Nvidia tend to keep winning for quarters. The play is to buy Nvidia (and to a lesser extent Microsoft) on short-term dips while this massive spending cycle runs.
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- Meta, Microsoft, Amazon, and Alphabet are about to spend a shocking amount of money to dominate the AI era — Yahoo Finance
- JPMorgan's Lipikhina Sees Earnings Supercycle Driving US Stocks — Bloomberg
- Nvidia Has Racked Up a Nearly $20 Billion Profit Over the Last 5 Months From an Unlikely Source — Yahoo Finance