#aistockswhatnext New data from Azeem Azhar's AI Investment Brief shows the AI
capex spend actually working, for now.
Annualized
AI revenue is already covering 160% of the annual cost of AI
capital in service (including a 15% ROIC hurdle). Infrastructure revenue alone covers 121%. Both sit in "safe" territory, up from "alert" levels below 50% back in 2023.
The forward numbers looks even less scary:
→ Revenue growth needed to cover capital committed over the next 24 months: 44%
→ Revenue growth needed to cover the next 12 months alone: 29%
Both requirements have fallen sharply since 2023, when the bar sat above 200%. Meanwhile AI infrastructure revenue has been compounding north of 200% annually, well ahead of what's required.$TAKE $SAGA $MET
capex spend actually working, for now.
Annualized
AI revenue is already covering 160% of the annual cost of AI
capital in service (including a 15% ROIC hurdle). Infrastructure revenue alone covers 121%. Both sit in "safe" territory, up from "alert" levels below 50% back in 2023.
The forward numbers looks even less scary:
→ Revenue growth needed to cover capital committed over the next 24 months: 44%
→ Revenue growth needed to cover the next 12 months alone: 29%
Both requirements have fallen sharply since 2023, when the bar sat above 200%. Meanwhile AI infrastructure revenue has been compounding north of 200% annually, well ahead of what's required.$TAKE $SAGA $MET
