AI companies have poured hundreds of billions of dollars into capex this year, and spending could exceed $1.3 trillion in 2027, according to S&P Global. The article argues that not every AI model or product will generate revenue, so investors are right to be skeptical, but some firms, including Microsoft (MSFT) and Amazon (AMZN), are already seeing returns on their investments. Amazon raised capex to $220 billion this year, mostly for AI; AWS holds 28% of the cloud computing market according to Synergy Research Group, has an annualized revenue run rate of $169 billion, and earned $16.6 billion in operating income at an operating margin above 39%. Microsoft is spending $175 billion on capex, and Azure's annualized revenue run rate has reached $100 billion, up 41% from a year earlier, with management saying cloud revenue could rise 45% in fiscal 2027. The author favors Microsoft over Amazon, citing an additional growth opportunity from AI software and services, including more than 30 million paid Copilot seats, a 50% jump in several months.
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AI investmentartificial intelligencecloud computingMSFTAMZN
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Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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