Are we in an AI arms race or a massive overspend? Kasey and Nick sit down with Simon Erickson, founder of 7Investing, to break down the staggering $364 billion spent on CapEx by Meta, Microsoft, Alphabet, and Amazon last year alone.
In this deep dive, we discuss:
-- Why companies like Google and Amazon are vertically integrating their own hardware (TPUs) to avoid Nvidia’s high margins.
--Apple’s "Patient" Approach: Why Apple's flat CapEx isn't a sign of weakness, but a calculated move to let others foot the bill for early-stage inefficiencies.
--Real-World AI Monetization: From "eliminating inefficiencies" in energy and healthcare to the shift from subscription models to usage-based AI agents.
--The Future of Investing: How AI is automating the "grunt work" of stock picking while increasing the importance of human empathy and trust.
Make sure you give Simon a follow @7investing
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Chapters:0:00 – Introducing Simon Erickson & Seven Investing 2:15 – The $364 Billion CapEx Question 3:50 – Why Simon is Invested in Google & Amazon 5:10 – The Apple Anomaly: Flat CapEx Strategy 10:45 – Where is the AI Payoff? Monetization & Advertising 13:20 – AI in Healthcare: Predictive Diagnostics & Surgery 17:45 – Are We at Peak CapEx? 23:50 – Semiconductor Cycle: The ASML & Intel Bottleneck 28:45 – Will AI Replace Stock Pickers? 34:10 – The Retail Investor Edge in an AI World
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Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
#AI #CapEx #Investing #SevenInvesting #ChipStockInvestor #Hyperscalers #Apple #Google #Amazon #StockMarket2026 #Semiconductors #HealthcareAI
Nick and Kasey own shares of Amazon, Google and others mentioned in the video
