FX168 Financial News Agency (North America) Update: Currently, the market generally believes that this summer is about the investment return of ai, or actually about no investment return. So, now the market is more concerned about how patient Wall Street is with the technology company's autumn earnings.
From the surge in chip stocks, investors waiting for information on all infrastructure capital trends and new revenue arrivals will have to wait a while longer. Appreciating assets themselves are defensive.
As analysts urge tech executives to set a clearer timetable for the so-called artificial intelligence transformation, chip stocks continue to rise. Nvidia once again threatens Apple as the most valuable company in the market. Semiconductor stocks are accumulating profits, reversing the decline in August. This reflects a strong demand for artificial intelligence processing and infrastructure, as well as a disregard for short-term concerns about expanding capital expenditures. Pursuing dreams is expensive.
Investors are once again wondering where the limit is, if it exists.
The third-quarter report is prepared to test these limits with even greater funding. The longer the capital expenditure pipeline remains open, the more intensely executives will integrate their identities with the AI wave, the harder it will be to turn back. Major tech companies are expected to invest $215 billion in AI capital expenditures this year, with Goldman Sachs projecting an additional $250 billion by 2025.
The slowdown in investment has not yet arrived. But investors will seek clues to see how long the growth of artificial intelligence can last until the company's ideas, preferences, and future expenditures begin to show up on spreadsheets. The imagined productivity gains and realization of 'innovative AI use cases' are only a matter of time.
The closely intertwined ecosystem of selling AI hardware indicates that once major tech companies reduce spending or shift to other areas, the previously strong fundamentals may be disrupted.
Last quarter, the performance of tech giants left Wall Street greatly disappointed. Only Meta achieved a clear victory. While earnings reactions from Alphabet (GOOG, GOOGL), Microsoft (MSFT), and Amazon (AMZN) underscore the possibility that AI investments could become burdensome, Zuckerberg indicates that as long as other parts of the business exceed expectations, Wall Street doesn't mind increasing capital expenditures. This sets a high bar. Moreover, as spending grows and there is no reliable income to offset it, it only becomes more challenging.
Anticipating risks is a necessary condition for companies to reach their peak. The same applies to curbing bubble rhetoric. If the rising trajectory of chip stocks is an indicator, technology giants will continue to double down on massive investments.
