Tech giants like Alphabet, Microsoft, and Amazon investing heavily in AI may see future stock performance impacted, Morningstar warns. Increased capital expenditure raises competition and hurts stock returns. Spending by Big Tech firms set to reach $364 billion in 2025, cutting into free cash flow. Analysts urge caution amid high valuations and uncertain macroeconomic conditions.

Read more at Yahoo Finance: History shows colossal capex from AI giants like Amazon and Meta could lead to underperformance in their stock