Why Amazon and Microsoft's stocks could be in trouble due to AI's destructive economics

Core Insights - Demand for AI computing remains high, but the economic conditions for Amazon and Microsoft are worsening, as they now need to invest six times more capital to achieve the same value as before according to an analyst [1] Company Analysis - Amazon is facing increased capital expenditure requirements to maintain its value generation in the AI computing sector [1] - Microsoft is similarly impacted, experiencing a significant rise in the capital needed to produce equivalent outcomes in AI computing [1] Industry Trends - The overall demand for AI computing continues to be robust, indicating a strong market interest despite the economic challenges faced by major players [1] - The shift in economics suggests a potential reevaluation of investment strategies within the AI computing industry as companies adapt to higher costs [1]