Questions how companies can spend $650B in capex this year and what the limits are.
Speaker1
Mandeep Singh
Only Google's massive capex is justified by 48% cloud revenue growth and high incremental margins. Amazon's growth is coming at the expense of margin compression.
Mandeep Singh
Nvidia's stock hasn't moved despite the capex increases, suggesting a limit to its near-term upside from this trend.
Asks which will hit first: serious supply constraints or the limits of investor tolerance.
Speaker1
Mandeep Singh
We are already seeing investor panic over free cash flow expectations. Capex is now 3-4x the historical baseline ($40-50B).
Mandeep Singh
Questions who Amazon's customers are for its $200B capex and whether it's for low-monetization training workloads versus revenue-generating inference.
Mandeep Singh
These sustainability questions will become clearer over the next 2-3 months.