Big Tech’s Q3 earnings show a massive surge in AI buildout, with companies investing billions to meet soaring demand for computing. Capital expenditures are rising across the sector, pointing to a sustained infrastructure race. Companies like Alphabet, Meta, and Microsoft are aggressively expanding to keep up with AI demand.

Veteran fund manager Chris Versace highlights the importance of capex in powering the next AI rally. Big Tech giants are increasing their capital spending, with combined AI and cloud outlays set to reach $420 billion by 2026. Chipmakers like Nvidia, Marvell, and Qualcomm are poised to benefit from the tech arms race.

Alphabet, Microsoft, Meta, and Amazon are all ramping up their investments in infrastructure to catch up with AI demand. Leaders like Sundar Pichai, Satya Nadella, and Mark Zuckerberg emphasize the critical role of cloud and AI in business growth. The AI boom is fueling a significant surge in capex spending across the board.

Amazon’s Andy Jassy sees the current moment as a unique opportunity, with the company adding substantial capacity to meet demand. Despite a drop in free cash flow, Amazon is investing heavily in infrastructure, with capex expected to exceed $125 billion. The tech industry is gearing up for a long-term infrastructure race driven by AI and cloud computing.

Read more at Yahoo Finance: Veteran fund manager sees quiet fuel for next AI rally