Hyperscalers Are Going Into Hyperdrive

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.3 • 3.1K Ratings

🗓️ 1 May 2026

⏱️ 39 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Big tech earnings have shown that artificial intelligence has become a massive growth business for the biggest companies in the world. And it better be because they’re spending nearly $1 trillion per year on the technology, but will it pay off? Travis Hoium, Lou Whiteman, and Jon Quast discuss: - Big tech’s AI growth - Is the economy healthy or hanging on by a thread? - Market predictions - Stocks on our radar Companies discussed: Textron (TXT), Circle (CRCL), Apple (AAPL), Amazon (AMZN), Alphabet (GOOG, GOOGL), NVIDIA (NVDA), Microsoft (MSFT), Meta Platforms (META). 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

Click on a timestamp to play from that location

0:00.0	If you thought the AI boom was ending soon, I have bad news for you.
0:05.9	Welcome to Motley Fool Hidden Gems Investing.
0:09.8	Welcome in, everybody.
0:11.3	My name is Travis Hoy.
0:12.1	I'm joined today by Lou Whiteman and John Quast.
0:15.3	And as much as I would like to move on from the artificial intelligence story, guys,
0:20.6	we have to talk about one of the crazier weeks that I can remember during earnings season.
0:26.0	On one day, we had Alphabet, Microsoft, Amazon, and meta report earnings.
0:32.0	Not even just a day within about a 20-minute span.
0:35.7	And, John, the numbers were absolutely crazy.
0:39.7	Alphabet was kind of the one that stuck out to me,
0:41.7	63% growth in their cloud business.
0:45.8	And, you know, all of the other companies are growing at astronomical rates as well.
0:50.3	We've talked about the AI spend, which is getting close to a trillion dollars per year in
0:55.8	CAPEX. The growth is phenomenal. But are we at this point where it has to be that good
1:06.0	to justify these ever larger numbers of capex spend?
1:17.0	Well, I mean, perhaps the most surprising development over the past week is that I am now the most bullish AI person in this room right now. But yeah, the growth is absolutely superb. And
1:23.8	it is this good, Travis. I mean, we can talk about the money that is actually recorded as generated revenue, right?
1:33.4	But that doesn't tell the whole story.
1:35.8	If you look at the remaining performance obligations, much of which are tied to their cloud businesses,
1:42.8	and much of that is related to AI spend. You look at Alphabet,
1:47.7	Amazon, and Microsoft. The RPO is at $460 billion, $364 billion, and $625 billion, respectively.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Motley Fool, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Motley Fool and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.