Big tech is spending a fortune on AI — ride the Nvidia wave higher
The four biggest tech companies — Meta, Microsoft, Amazon, and Alphabet — are preparing to spend an unprecedented amount of money to win the AI race. Nvidia, which makes the chips they all need, has already earned nearly $20 billion in profit in just five months from this spending boom.
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Meta, Microsoft, Amazon, and Alphabet are collectively pouring hundreds of billions into AI infrastructure — and Nvidia is the company selling them the picks and shovels. Nvidia has already banked nearly $20 billion in profit in just five months, and JPMorgan says this spending is kicking off an earnings supercycle that could keep pushing stocks higher. CEO Jensen Huang is actively pitching that AI returns will be 'insane,' trying to convince investors the spending is worth it. As long as these tech giants keep competing to outspend each other on AI, the chip and infrastructure companies feeding that spending stand to keep winning.
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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
- Nvidia Has Racked Up a Nearly $20 Billion Profit Over the Last 5 Months From an Unlikely Source — Yahoo Finance
- JPMorgan's Lipikhina Sees Earnings Supercycle Driving US Stocks — Bloomberg