Hi,
We could talk a lot about where the market is going, but it is led by only a few companies that are spending money on data centers, investing in new technologies, and defining our future. They all reported earnings this week, and we saw one big megatrend—the growth of cloud revenue, which is becoming the driver of growth.
Microsoft does not report the revenue for Azure in isolation. The $30.9 Billion figure for Microsoft (the blue bar) represents the total revenue of their broader Intelligent Cloud segment. However, the 40% growth rate (the diamond marker) is specifically the growth rate reported for the core Azure and other cloud services component.
Big Tech CAPEX: The $300B Infrastructure Arms Race
To achieve such high performance, Big Tech is spending huge sums on CAPEX , building data centers and creating an entire class of AI Infrastructure Frontrunners. Tens of billions of dollars are being spent on AI because spending more than necessary is more dangerous than losing.
Apple stands apart because it spends all its resources on improving cameras and emojis, wasting its resources. We will talk more about Apple’s future, as you requested, but for now, let’s look at how much Big Tech’s capital expenditures amount to.
What conclusions can be drawn here?