AI stocks moving sharply higher today after Meta and Microsoft posted those strong results and doubled down on CAPEX.

But longer term, the picture might not be as bullish.

Our Dear Dubosa breaks down why in today's tech check. Morning, Dee.

Hey, good morning, Carl. I hate to be the Debbie Downer, but here's what we saw and what we didn't.

Now, those two reports ease some of the biggest concerns around the

AI trade this year in terms of demand and monetization. Microsoft affirmed KAPX meta raised its,

GitHub co-pilot users up 4X, meta's AI-powered ad tools gaining adoption. But have concerns

really been put to bed? Not quite. Zoom out in Microsoft's CAPEX last quarter. It was actually

its first quarter over quarter decline in years, a potential yellow flag, at least if you're betting

on uninterrupted AI buildout, digestion or recalibration. That's not totally off the table with

this report. Meta, meanwhile, did raise its CAPEX plans by as much as $7 billion, but that comes with

a caveat, too.

Goldman Sachs expects depreciation is set to spike to nearly 50% in 2026, and MetaZone CFO told

investors that infrastructure buildout costs, they will rise driven by supply chain uncertainty

and potential tariff impact.

Then there is this chart.

The scale of meta's spending is eye-popping when you put it into context.

It is projected to spend a bigger share of its revenue on CAPEX than even Microsoft, Google,

or Amazon, the hyperscalers, all of which have massive public cloud businesses driving

demand.

Meta doesn't have that enterprise backstop.

Its bet is largely on Lama, its open source AI model family, which is, by the way,

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