
AI's Absurd Spending Boom? Hyperscalers Are Spending 102% of Cloud Revenue on Capex
The artificial intelligence boom is turning corporate capital spending into a different kind of arms race.
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The artificial intelligence boom is turning corporate capital spending into a different kind of arms race.

Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has spent the last year alongside NVIDIA (NASDAQ:NVDA) as the two poster children of the AI trade.

Tesla has ended production of older models, intending to shift toward making humanoid robots. Electric vehicles are still the company's bread and butter.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) trades at $215.17 as of Friday afternoon.

Nvidia's Q2 consensus stands at $92.05 billion revenue and $2.09 EPS after eight consecutive quarters of beats. Q3 revenue expectations have climbed to $103.7 billion, making forward guidance more important than another routine Q2 beat. Vera Rubin, China shipments and CPUs could extend growth, with Nvidia targeting a $200 billion CPU opportunity.

Meta is facing what could be its most consequential trial yet, as 29 state attorneys general accuse the tech giant of knowingly designing Facebook and Instagram to addict children and misleading the public about the risks. The states are seeking civil penalties that could approach $200 billion and changes to core features like infinite scroll and autoplay, while Meta says the claims are unsubstantiated and that it has built strong protections for teens.

The US automaker said the recall covers imported and China-made Model 3, Model Y, Model S and Model X vehicles, according to notices filed with China's State Administration for Market Regulation.

Based on the latest updates from Microsoft and other hyperscalers, I see clearer validation of MSFT's AI strategy. The combination of enhanced revenue visibility and better-covered capex investment improves my confidence for a more sustainable AI investment cycle and return pathway. MSFT's enhanced revenue visibility is evidenced by robust RPO growth, increased unearned revenues, and expanding receivables.

Tesla's recall of nearly 3 million vehicles in China involves door handles that may trap occupants after severe collisions if low-voltage systems fail.

In trial that opened on Tuesday, California and 28 other states accused the company of designing addictive sites and violating laws protecting children's privacy

Nvidia was 7.50% of the Vanguard S&P 500 ETF at the end of June, against 6.58% for Apple. The fund's five biggest positions add up to just over 25% of its $1.05 trillion in assets.

Nvidia (NASDAQ: NVDA) shareholders holding 100 shares of the firm are expected to receive $25 when the company's next quarterly dividend is paid.

NVIDIA's strong AI demand, 91B revenue outlook and attractive valuation point to potential upside ahead of fiscal Q2 earnings.

Tesla (NASDAQ:TSLA | TSLA Price Prediction) and SpaceX (NASDAQ:SPCX) just gave investors two very different versions of the Musk future.
Nearly a decade ago, Tesla introduced its solar roof, which was essentially a mini-power plant that happened to look like high-end shingles, fancy terracotta tiles or refined slate slabs.