AI investment reset looms as analyst questions Big Tech's $990 billion capex plans

Jefferies analyst Chris Wood has signaled skepticism over Big Tech's massive capital expenditure commitments in artificial intelligence. He questions whether Meta, Alphabet, Amazon and Microsoft can realistically maintain projected capex of $990 billion by 2027, suggesting the AI investment narrative may face a significant reset.

Wood also highlights an emerging advantage for Indian IT services firms in the global AI landscape. He notes that Indian IT company valuations have declined despite resilient employment levels, positioning them as a potential reverse AI trade opportunity in the sector.