Bank of America stated that as the market shifts toward evaluating investment returns, the heyday of hype around AI has ended.
This week, tech giants including Microsoft, Amazon, and others will release quarterly financial reports, and the AI theme will be further scrutinized. Bank of America said that the market is now shifting towards evaluating the investment return of this continuously evolving technology. She said: "As AI shifts from 'tell me' to 'show me,' companies clearly monetizing AI are likely to lead the way from here."$Microsoft (MSFT.US)$Savita Subramanian, head of U.S. stocks and quantitative strategy at Bank of America, said that the investment cycle for AI may continue, "but the heyday of AI hype is over." She said that in the past 12 months, the market has been in the "tell me" stage of AI. Subramanian cited Bank of America and Microsoft as examples of companies that have monetized AI, and their stock prices have risen since the release of their latest financial reports.
In a report, Bank of America stated that the expected capital expenditures of so-called hyperscale companies such as Amazon and Microsoft in the field of AI have been revised upward by $18 billion, while sales forecasts have only increased by $2 billion since March. In other words, for every $1 increase in sales, AI capital expenditures will increase by $9. Subramanian said that historically, companies in the reinvestment cycle have not performed well.$ServiceNow (NOW.US)$And$Adobe (ADBE.US)$Bank of America listed Bank of America and Microsoft as examples of companies that have monetized AI, and their stock prices have risen since the release of their latest financial reports.
Bank of America stated in a report that the expected capital expenditures of so-called hyperscale enterprises like Microsoft and Amazon in the field of AI have been revised upward by $18 billion, while sales forecasts have only increased by $2 billion since March. In other words, for every $1 increase in sales, AI capital expenditures will increase by $9.$Meta Platforms (META.US)$And.$Amazon (AMZN.US)$By 2024, the expected capital expenditure growth of hyperscale enterprises like Alphabet, Microsoft, Meta and Amazon is expected to account for most of the capital expenditure growth, reaching $198 billion. Subramanian said that historically, companies in the reinvestment cycle have not performed well.
In 2024, large-scale enterprises$Alphabet-A (GOOGL.US)$The capital expenditure growth of Alphabet, Microsoft, Meta and Amazon is expected to account for most of the capital expenditure growth, reaching $198 billion. $S&P 500 Index (.SPX.US)$Subramanian said that historically, companies in the reinvestment cycle have not performed well.
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