Over the past two weeks, the world’s biggest technology companies – including Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOGL), Meta (META), and Tesla (TSLA) – have all reported earnings.
These quarterly results have been pretty stellar. But the conference calls and investor presentations are what offer Wall Street insight into how these Big Tech companies feel about the current state of the AI trend.
And the key takeaway there? Big Tech is beyond bullish – and they’re all putting their money where their mouth is.
First to report were Microsoft, Meta, and Tesla. All three spent a ton of time on their conference calls talking about new AI product and service offerings launching in 2025. And while that bodes very well in and of itself, it was something else entirely that really piqued our attention…
The firms’ capital expenditures (capex).
How Big Tech Capex Is Bullish for AI
At first glance, that may seem counterintuitive. Most often, expenditures are something a company wants to minimize. Since it directly affects free cash flow, it usually has a significant impact on a firm’s valuation.
Though ironically, this Big Tech capex is supremely bullish.
How so? Well, Microsoft, Meta, and Tesla plan to spend a ton of money on developing new AI capacity this year.
Microsoft expects to drop $80 billion in capital expenditures. Meta plans to spend a little over $60 billion, and Tesla will spend about $10 billion. That’s $150 billion worth of AI infrastructure investment.
But it doesn’t even stop there.
This week, it was Amazon and Alphabet’s turn in the hot seat. Both reported earnings. And both echoed commentary from their Big Tech peers: AI is changing everything, all their customers want more, and they’ll spend heaps to make sure they can provide it.
Alphabet pointed to $75 billion in capex this year, while Amazon plans to spend a whopping $100 billion.
Collectively, Amazon, Microsoft, Alphabet, Meta, and Oracle (ORCL) are expected to spend nearly $350 billion in capital expenditures this year. That is seen rising toward $400 billion in 2028.
When the world’s biggest and most powerful companies are planning to pour hundreds of billions of dollars per year into a single industry over the next several years, what should you do?
Find the best stocks to buy in that industry.
That’s what we’re trying to do in our research services… because Big Tech has spoken. The AI Boom is far from over. In fact, 2025 may be its best year so far.
The Final Word
But when it comes to successful investing, diversification is essential. So, while we are looking for the best AI stocks to buy, we’re also on the hunt for other highly profitable trades…
Cryptos have been exceptionally volatile recently. They are inherently very risky – not something anyone should bet the farm on. Nor should anyone have their whole portfolio dedicated to cryptos.
These may be the riskiest assets out there.
But they can also soar when the time is right.
And we think the time is right for a major crypto rally.
To help explain why, I just hosted an emergency crypto market webinar.
In that broadcast, I discussed my outlook for the crypto markets in 2025 and outlined why I think this could be the year of huge altcoin gains – much like 2021, when dozens of altcoins rallied more than 5,000% in a single year.
And this time, we’ve got a powerful quant-based trading algorithm at our side. This tool attempts to identify a predictable pattern before cryptos surge, potentially as much as 10X, 50X, even 100X in a hurry – sometimes in 90 days or less.
This webinar was packed with information that I think you’ll find extremely valuable if you’re looking to boost your portfolio gains.
And don’t worry if you missed it. We’ve saved a replay for you right here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. You can stay up to speed with Luke’s latest market analysis by reading our Daily Notes! Check out the latest issue on your Innovation Investor or Early Stage Investor subscriber site.