Returns on AI capex have been a looming question for Wall Street investors, but JPMorgan says that elusive AI monetization is a big reason it’s boosting its S&P 500 price target for the year. The bank’s strategists hiked their target for the benchmark index on Monday, as they eye an “increasingly visible” payoff from the
Microsoft kept its capital spending forecast unchanged on Wednesday, becoming one of the first data center giants to maintain control of the industry’s rampant AI spending. Shares rose about 8% on the news. Earlier this year, the company said it planned to spend $190 billion on capital expenditures this calendar year. On Wednesday’s earnings call,
Meta Platforms is heading into an earnings report with strong implications for the market’s AI narrative. The social media giant, which will report its latest results after the closing bell on Wednesday, is among the AI ”hyperscalers” spending hundreds of billions on the technology, and such high spending isn’t being greeted with great enthusiasm by
The bill for Google’s AI overspending is yet to come. Google said Wednesday that its second-quarter free cash flow turned negative by $5.9 billion, as the company’s capital spending continues to rise. It’s the first time the company has reported negative free cash flow in decades, according to AlphaSense, a sign of how much money
Big Tech earnings season begins next week with Google, but the most important number won’t be profits or revenue. It will be how much these companies say they will spend on AI data centers. Google, Amazon, Microsoft and Meta have already laid out plans to spend more than $700 billion this year. Investors know that
Warren Buffett says he made a mistake with Alphabet. The Oracle of Omaha said he called on Berkshire Hathaway to invest billions in Alphabet. The conglomerate owns shares worth about $31 billion. Buffett’s only regret? That Berkshire did not invest in Google’s parent company before, he said in an interview with CNBC this week. “I
