Here’s Why Amazon, Alphabet, and Microsoft’s AI Spending Is a Genius Move

The market is really concerned about one thing right now: artificial intelligence (AI) spending. It’s understandable; many of the AI hyperscalers are dumping a boatload of money into this technology, and there hasn’t really been a return on investment. The market would rather see some of that money go toward proven technologies or strategies that can provide a return on capital. I think AI will provide that, but investors have to be patient.

The market isn’t usually a patient entity. For the most part, each stock is judged on what it’s doing in the next quarter or year, not where it’s heading in five years. This mistake is an ideal investor opportunity, as this AI spending starts to make sense when you look at it from a 50-year time frame. With that in mind, I think the capital expenditure projections from Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Microsoft (NASDAQ: MSFT) are reasonable, as the opportunity is there.

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