Big Tech's rising AI investments show market bubble 'still has a good ways to go'

Core Insights - Big Tech firms are significantly increasing their investments in artificial intelligence, indicating that the stock market may still have room for growth despite concerns of a bubble [1][2] Capital Expenditure Forecasts - Amazon raised its full-year capital expenditure forecast to $125 billion from $118.5 billion [3] - Alphabet increased its expenditure guidance for the third consecutive quarter to $92 billion from $85 billion [3] - Meta adjusted its capex forecast range for the third time this year to $71 billion from $69 billion [3] - Microsoft reported capital expenditures of approximately $35 billion for its fiscal first quarter, exceeding the $30 billion expected by analysts [4] AI Spending and Ecosystem - The reported capital expenditures do not fully reflect the total spending on AI, as companies are also investing in third-party AI cloud providers while developing their own data centers [5] - Microsoft and Meta are noted customers of AI data center provider CoreWeave [5] Investor Sentiment and Stock Performance - Investor confidence in Big Tech's AI initiatives remains strong, with most companies funding AI projects through healthy cash flows from core businesses [7] - Amazon's stock reached an all-time high following its results, while Alphabet's stock also saw an increase [6] - Microsoft shares experienced a slight decline due to Azure cloud revenue falling short of high expectations, while Meta's stock suffered a significant drop amid doubts about its AI strategy [6]