Tech earnings season is highlighting hyperscalers’ heavy spending on AI infrastructure, with investors closely monitoring capex budgets. Neoclouds are being utilized by capacity-constrained providers to handle AI workloads. Amazon’s upcoming earnings report is highly anticipated, with a focus on capital expenditures and AI infrastructure investments.

Neoclouds like CoreWeave and Iren are partnering with chip designers to provide GPU clusters for companies with capacity constraints. Nvidia’s recent $2 billion investment in CoreWeave underscores the potential of neoclouds. Microsoft’s $9.7 billion deal with Iren indicates a growing trend of hyperscalers leveraging neocloud services for AI workloads.

Investors are advised to consider adding neocloud stocks like Iren to their portfolio, as they offer potential growth opportunities in the AI infrastructure space. While timing around earnings announcements may not be crucial, the long-term benefits of investing in neocloud companies like Iren could prove to be advantageous.

Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Infrastructure Stock Will Go Parabolic on Feb. 5