Hyperscalers Are Going Into Hyperdrive
5/1/202642 min
Big tech earnings have shown that artificial intelligence has become a massive growth business for the biggest companies in the world. And it better be because they’re spending nearly $1 trillion per year on the technology, but will it pay off? Travis Hoium, Lou Whiteman, and Jon Quast discuss:
- Big tech’s AI growth
- Is the economy healthy or hanging on by a thread?
- Market predictions
- Stocks on our radar Companies discussed: Textron (TXT), Circle (CRCL), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG, GOOGL), NVIDIA (NVDA), Microsoft (MSFT), Meta Platforms (META). Host: Travis Hoium Guests: Lou Whiteman, Jon Quast Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices
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Transcript preview
First 90 secondsTravis Hoium· Host0:00
[upbeat music] If you thought the AI boom was ending soon, I have bad news for you. Welcome to Motley Fool Hidden Gems Investing. Welcome in, everybody. My name's Travis Hoang. I'm joined today by Lou Whiteman and John Kwast. And as much as I would like to move on from the artificial intelligence story, guys, we have to talk about one of the crazier weeks that I can remember during earning season. On one day, we had Alphabet, Microsoft, Amazon, and Meta report earnings. Not, not even just a day, within about a 20-minute span. And John, the numbers were absolutely crazy. Alphabet was kind of the one that stuck out to me, 63% growth in their cloud business. And, you know, all the other companies are growing at astronomical wa- rates as well. We've talked about the AI spend, which is getting close to a trillion dollars per year in CapEx. The growth is phenomenal, but are we at this point where it, it has to be that good to justify these ever larger numbers of CapEx spend?
Jon Quast· Guest1:10
Well, I mean, perhaps the most surprising development over the past week is that I am now the most bullish AI person in this room right now. But yeah, the growth is absolutely superb, and it, it does-- it is this good, Travis. I mean, we can talk about the money that is actually