Amazon's capex increase was expected, but margin headwinds exist because Google's cloud margins expanded while Amazon relies on its own training chips, which may not be as performant as NVIDIA GPUs.

The market is overreacting to AI product releases, treating all software companies with multiple compression, but infrastructure categories like cybersecurity are insulated because they require system log data that new entrants can't easily replicate.

Demand for accelerator and memory companies is off the charts, supply shortages will intensify near-term, and companies like NVIDIA and Broadcom will bring great numbers.