Capex

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The market is likely to broaden out in 2026, says Citi's Rob Rowe
CNBC Television· 2025-08-18 15:51
GDP & Economic Outlook - Private consumption historically represented 70% of GDP growth, but in 2025, AI spending is projected to contribute the same amount [1] - The US GDP growth is anticipated to slow to 1-1.5% in the first half of the year and 1% in the second half [2] - Markets are looking beyond a potential US slowdown this year, anticipating growth from tech and innovation next year [3] AI & Tech Investment - AI companies are fairly valued versus growth when looking at PEG ratios [4] - Concerns exist regarding the economy's reliance on AI and capex spending, as this spending could be turned off more easily than consumer spending [5] - Infrastructure growth, including data centers, power grids, and chips, is necessary to support AI development [6][7] - Digital services exports are growing exponentially and now account for 40% of global exports [7] - Current capex and infrastructure investments are primarily funded by strong cash flows, unlike the overleveraged situations in the past [8][9] Market Strategy - The industry expects a broadening out of investment opportunities to other sectors next year [10] - The industry is currently overweighting tech and communications due to their growth prospects [10]
Nvidia-China deal good for company and shareholders, says Intelligent Alpha's Doug Clinton
CNBC Television· 2025-08-11 20:06
Let's bring in Nvidia shareholder now Doug Clinton of Intelligent Alpha. It's good to see you. Good to see you, Scott.You see an announcement like this come out of DC today. You say what. It's the summer of deals in techland.We keep seeing new deals. I mean, we talked about rare earth metals just a minute ago. MP materials was kind of one of the deals that almost kicked off the deal train that we've been on.Then we had Apple, now we have Nvidia. I think from an Nvidia perspective as a shareholder, the terms ...
Amazon boosts capex to more than $118 billion as AI cloud arms race heats up
CNBC Television· 2025-07-31 22:08
Capital Expenditure (Capex) Targets - Amazon's capex spending target is upped to $314 billion for the current quarter, representing a reasonably representative quarterly capital investment rate for the back half of the year [1] - Factoring in Q1 spend of $24 billion, Amazon's annualized capex is more than $118 billion [2] - Alphabet raised its annual capex target to $85 billion [2] - Microsoft is projected to spend $30 billion this quarter alone, putting it on track to hit $120 billion in its new fiscal year [2] Industry Trends - The increased capex spending underscores an unprecedented AI cloud arms race among hyperscalers [2] - Most of Amazon's investment is aimed at expanding AI infrastructure for AWS [2]
The 'Halftime' Investment Committee weigh in on 'Big Tech' CapEx spend amid AI war
CNBC Television· 2025-07-24 16:49
AI 投资与支出 - 市场希望科技公司在 AI 领域积极投入,成为前三的玩家被认为是生存必需 [2] - 市场对增加资本支出 (Capex) 的反应是积极的,即使短期内投资回报 (ROI) 无法量化 [1][3][4] - 华尔街愿意等待投资回报,因为他们看到了 AI 革命的潜力 [16] 效率与生产力 - 科技公司正在追求更高的效率,目标是像英伟达 (Nvidia) 一样,达到每位员工 400 万美元的收入 [6] - Alphabet 的员工人均收入约为 220 万美元,在效率方面领先 [7] - 公司正在利用 AI 作为内部生产力工具,优化员工工作,并计划在未来将 AI 货币化 [8] 市场趋势与未来展望 - 宏观环境正在转向乐观,AI 创新需求广阔,公司将继续增加 AI 领域的支出 [10][11][12] - 行业将从大型语言模型 (LLM) 和 Co-pilot 转向面向消费者和企业员工的 Agentic AI [12] - 硅谷正在量化 Agentic AI 的影响,Salesforce 等公司正在内部推广 AI 应用 [13][14] OpenAI 与 ChatGPT - OpenAI 计划在 8 月推出 ChatGPT 5,但预计不会有重大飞跃,更多是现有模型的整合 [17][18] - 市场对 ChatGPT 5 的期望是改进现有功能,例如将表格转换为图形,而不是实现通用人工智能 (AGI) [21][22][23] - OpenAI 和微软 (Microsoft) 正在就 AGI 的未来进行谈判,微软将优先使用相关技术 [19]
Broadcom gets Google CapEx boost
CNBC Television· 2025-07-24 16:16
Market Trends & Industry Dynamics - Google's increased capital expenditure (capex) forecast by $10 billion to $85 billion for the year is boosting shares of Nvidia and Broadcom [1] - Google and Broadcom have been collaborating since 2016 to develop Google's AI chips, known as TPUs [2] - Reports suggest Google and Meta are considering MediaTek for cheaper AI chips, with Meta potentially using MediaTek for an AI inference chip by 2027 [3] - The custom chip race is intensifying for both Nvidia and Broadcom as MediaTek gains traction [7] Competitive Landscape & Potential Risks - MediaTek's cost advantage in custom silicon could put pressure on Broadcom's margins and increase competition in the coming years [4] - Custom chips (ASICs) can offer greater efficiency for specific data center tasks, potentially challenging Nvidia's GPU dominance as AI workloads mature [5] - Nvidia's CEO downplays the threat of custom chips, emphasizing Nvidia's scale and CUDA software advantage [6] Company Strategy & Outlook - Broadcom remains confident due to its strong pipeline, despite the increasing competition in custom chips [6]
Expect the capex trajectory to remain very strong, says Joe Lavorgna
CNBC Television· 2025-07-23 13:09
Capex Boom & Economic Growth - Business equipment production rose 23% in Q1, and GDP accounts showed a 24% increase [4] - Q2 showed a near 11% increase, resulting in a 17% annualized gain over two quarters, the largest since 1997 (excluding the pandemic) [4][5] - The extension of tax policy incentivized companies to invest in capital [6] - Expects capex trajectory to remain strong, fostering upward pressure on wages [7] - Sees potential for a "blue wages boom" with non-supervisory production workers earning bigger paychecks [7] - The administration's outlook is based on 3% growth, considered doable due to productivity trends and labor force participation [18][20] - Expects AI boom to generate quicker payoffs from capital investment [20] - If growth reaches 3%, there could be an additional $4 trillion not counted by the CBO, potentially alleviating deficit concerns [21] Tariffs & Inflation - Tariffs have not had the expected effect on price data, with most of the tariff being absorbed in the margin [12] - The majority of the tariff has been absorbed in the margin [12] - The US could be collecting $300 billion in tariffs, but inflation data has been minimal [13] - Energy costs and capex tend to be disinflationary, offsetting potential lingering effects from tariffs [14] International Trade & Investment - Japan will commit over $500 billion (550 billion) to the US through an innovation fund [16]
Cakmak: AI is going to be even more profound than most expect
CNBC Television· 2025-07-23 11:50
Alphabet (Google) Analysis - Cloud business estimates project a 26% year-over-year growth [1] - Ad business estimates project around 7% growth [1] - Qualitative commentary around AI efforts is critical for Google's search business reacceleration [2] - The key question for Google is the future of its search business and the impact of AI [2] - AI investments are considered justified and the pace of capex spending is a key factor for the semi-industry [4] Tesla Analysis - Q2 deliveries are down 14% [5] - Volatility has increased and will continue to increase, requiring shorter duration outlooks for many tech names, but Tesla requires a longer-term horizon [6] - The optionality around robotics and robo-taxi is a key investment driver [7] - Results and their interpretation are expected to be polarized, with bulls focusing on optionality and bears on declining short-term estimates [8]
The 'Halftime' Investment Committee give their top chip plays
CNBC Television· 2025-07-21 17:09
I I think the question is what do you do. What do you watch for as the indicator. What's your indicator to tell you is the market rolling over.And I think there's no industry that better reflects the recovery that we have experienced than the semiconductor industry. Remember, if you think about where the semiconductor industry was coming into 2025, the semiconductor industry had kind of lost some of the bullish sentiment, some of the bullish positioning. It went towards software.People said, "Okay, you're m ...
'Fast Money' traders look ahead to next week's big tech earnings
CNBC Television· 2025-07-18 21:50
Market Expectations & Strategy - The market is positioned for tariff impacts to be less of a headwind than previously anticipated [1] - Caution is advised as earnings season progresses [2] - Overall earnings expectations from analysts and investors have increased, requiring close monitoring [4] Google (Alphabet) Analysis - Google has underperformed compared to other Mag 7 companies like Microsoft over the last 3 months [2] - Google's valuation is considered cheaper than its peers, potentially discounting concerns about AI cannibalizing its search business [11] - Investors will scrutinize Google's plans for transitioning to AI-driven search and defending its incumbent search business [6][7] - Focus is on whether Google's AI search is diminishing ad revenue [12] - The bar for Google's earnings is not as high as for some other companies [13] AI & Capex - The market is looking for insight into capex spending, particularly related to AI [7] - Concerns exist about the monetization of significant capital expenditure in AI [10] - The timing of when AI investments will translate into margin expansion is a key question [9]
“Larry Ellison is a Genius!”
20VC with Harry Stebbings· 2025-07-03 05:00
At IPO, I think Larry Ellison owned something like 23% of Oracle. Typically, that goes down over time. He now owns 41% of Oracle.What's he done. Every year, he's run that business superbly. It's got 43% operating margins and he's used that cash to buy back shares.He hasn't sold any. So, his ownership has just gone up over time. Two things happened this year.One is the stock really popped 40% and he got a lot of cloud credit. But the interesting thing is this is the year he actually abandoned the buyback str ...