Questions whether Amazon's $200B capex forecast is purely for AI or includes robotics, satellites, and other areas, and suggests massive tech capex might explain market hostility toward software stocks due to potential displacement.
speaker1
Gene Munster
Estimates 80% of tech capex is AI-related. The central question is whether companies increasing investments are competent and have a good view of where the world is going.
Suggests if $600B in capex from five companies is correct due to high demand, it must displace massive revenue and profit pools elsewhere, likely in software.
speaker1
Gene Munster
Argues that if you believe the tech giants are competent, the only conclusion is we're still early in AI transformation. Capex won't end in 2026, will continue through 2027, and speaks to the level of disruption coming.