Bears Got Served: AI Cloud ROI Pays Back Sooner Than Anyone Modeled

AI CapEx still carries real risks. Supply will eventually increase. Financing costs matter. Utilization can fall. And today's extremely strong pricing will not necessarily last forever.

But one of the bears' strongest arguments has clearly weakened.

For months the question was:

“What if everyone is spending hundreds of billions on AI infrastructure and the returns never show up?”

Q2 is starting to provide an answer.

The returns are already showing up. The assets may last longer than expected. And that makes the hardware underneath the AI boom much harder to bet against.

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