While AI competition makes capex spending unavoidable, the primary challenge remains successful monetization; Microsoft (MSFT) stands out as the most bullish pick among cloud providers for those seeking a recovery play, Apple (AAPL) offers solid stability and consistent growth with its asset-light AI strategy, and Amazon (AMZN) presents a fundamentally strong opportunity to bottom-fish for a potential rebound after its massive drop
Mag 7 Capex Recap: Apple Defies Trend! What's Your Pick?
@Tiger_comments：This recent tech rout boils down to one word: Capex. While the AI hype is real, the spending is massive and the short-term monetization remains blurry. Combined with high valuations and a broader market correction, we’ve seen a "domino effect" across the board: $Alphabet(GOOG)$ & $Amazon.com(AMZN)$ : Earnings showed strong growth, but sharply higher Capex spooked investors. Google managed to claw back from a 7% intraday drop to close -0.6% lower, while Amazon plummeted roughly 10%. $Microsoft(MSFT)$ : Also mired in the Capex trap. The stock has shed about 15% over the past two weeks, slipping below the key $400 psychological level. $Meta Platforms, Inc.(META)$ & $Tesla Motors(TSLA)$ : Meta has given back almost all of last week’s gains, while Tesla took a sharp hit, sliding back under $400. $Apple(AAPL)$: While other giants retreated, Apple rallied about 10% over the same period, showing incredible relative strength. The 2026 Capex: Who’s More Anxious? The 2026 "Star Wars of Compute" is seeing total investment approach a staggering $600 billion. Let’s look at the Capex projections from the tech titans: 🥇 Amazon (~$200B): Absolutely insane spending. To defend the AWS throne, Bezos’s successors are going all-in. $200 billion? That’s not just an investment; it’s a statement that they will outspend everyone to stay #1. 🥈 Google (~$1,850B): Sundar Pichai is clearly feeling the heat, with spending effectively doubling. To prevent ChatGPT from taking their lunch, Google is not just spending—they’re signaling to Wall Street: "Demand is still outstripping our supply!" 🥉 Microsoft (~$150B+): The steady "gold-digging beast." At $37.5B per quarter, they are on track for $160B a year. After all, raising a "son" like OpenAI is an expensive endeavor. 😶 Meta ($115B - $135B): Remember when Zuck was mocked as a "spendthrift" for the Metaverse? Looking at these numbers now, Meta actually looks... disciplined? He’s currently the "lowest" spender among the giants (even if that "low" is still $130B+). There are two prevailing narratives regarding this Capex explosion: The Cloud Provider Logic (AMZN, GOOG, MSFT) Their infrastructure spending is backed by actual B2B customers. As long as the cloud market expands, this Capex builds a massive competitive moat. The Consumer Monetization "Ghost Story" (META, AAPL, TSLA) These companies must recoup their AI billions one or two dollars at a time from individual consumers. If the "AI killer app" for consumers doesn't materialize, this Capex becomes a heavy drag on the balance sheet. AI competition seems to make capex spending unavoidable — but in the end, who will actually monetize it? Which company are you most bullish on after recent earnings? Would you buy Apple at these levels, or try to bottom-fish some of the recently beaten-down names? Leave your comments to win tiger coins~
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