Tech giants are not going to slash their AI spending plans, bullish tech analyst

Don't expect Big Tech CEOs to pull back on aggressive capital expenditure plans to appease weary shareholders.

Today's hot take: "My view is that this is an arms race. And if anyone cuts back, others would just get ahead of them in line. It's about compute power. It's about capex. It's about building partnerships," Wedbush tech analyst Dan Ives said on Yahoo Finance's Opening Bid.

"I get in terms of the stock performance, and you know what that ultimately dictates," he said. "They cannot, at this point, cut back. I mean, because when you think about where we are in the AI revolution, they are right now going to be in the monetization phase over the next six, nine, 12 months."

By the numbers: Goldman Sachs expects a combined $5.3 trillion of capital expenditures for the four largest hyperscalers — Meta (META), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG, GOOGL) — from fiscal year 2025 to fiscal year 2030. Prior to the start of first quarter earnings, this estimate stood at $4.5 trillion.

The baseline aggregate capital expenditures estimate stands at $7.6 trillion between 2026 and 2031, spread across compute, data centers, and power.

Google, Amazon, Microsoft, and Meta c

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/article/tech-giants-are-not-going-to-slash-their-ai-spending-plans-bullish-tech-analyst-says-165146278.html)