Big Tech’s $650 Billion Bet on AI

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 6 February 2026

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

What’s a few hundred billion dollars in capex spending among friends? When it comes to big tech, the numbers have gotten astronomical and there’s both enthusiasm and fear about this much spending, so we try to make sense of what’s going on. Travis Hoium, Lou Whiteman, and Jon Quast discuss: - Big tech’s $650 billion bet on AI - This week’s SaaS-pocalypse - We play Gold, Silver, and Bronze - Stocks on our radar Companies discussed: Amazon (AMZN), Alphabet (GOOG, GOOGL), Microsoft (MSFT), Meta Platforms (META), Coupang (CPNG), Cava (CAVA), Chipotle (CMG), Starbucks (SBUX), Portillo’s (PTLO), Texas Roadhouse (TXRH), Markel (MKL). Host: Travis Hoium Guests: Lou Whiteman, Jon Quast Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Big Tech is spending big money, but is it going to pay off? Molly full money starts now. The Everybody needs money. That's why they call it money.
0:30.0	The best things in life are free, but you can give them to the pros and bees.
0:36.6	From Fool Global Headquarters, this is Motley Fool Money.
0:40.3	Welcome to Motley Full Money.
0:41.4	I'm Travis Hoyum, joined today by Lou Whiteman and John Quast.
0:45.2	And guys, Big Tech took center stage this week.
0:48.3	And the conversation was all about capital expenditures
0:50.9	between Meta, Microsoft, Alphabet, and Amazon.
0:54.0	We got guidance for about
0:56.5	650 billion dollars in CAPEX for 2026. A year ago, these companies weren't spending
1:04.5	enough. Now the market is saying, whoa, whoa, whoa, we're going to spend this much. We're
1:08.8	going to spend all of your operating cash flow.
1:13.8	Lou, what do we take from this week?
1:21.1	Because it seems like the numbers were so big that even the most bullish AI investors were shocked at how much money these companies are spending.
1:24.0	Yeah, let's double down on just how big that is.
1:25.6	Let's get some perspective here.
1:30.2	That's 650, all right? Bloomberg says the largest U.S. automakers, construction manufacturers, railroads, aerospace companies, transports, and energy
1:34.9	companies, 21 companies in all. They are going to spend a combined $200 billion, so less than a third
1:41.4	of that in 2026. For 21 companies, it's also, ironically, 650 is about the combined loss of market cap by these big four post earnings when they've announced this. Look, so here's the thing. How do we think about AI? I am not going to dispute the potential. I am not sure about the time frame, and I am
2:04.8	scared about the economics. All three things are true. So I think there, yes, is a potential for
2:11.8	payoff, but what will that payoff be and how long will it take? I think that's what the market's
2:17.1	worried about.
	...

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