$13 billion that seems to ‘scream’ Apple’s AI strategy is not wrong

Tech stocks have been facing torrid days in the last few days. As Big Tech’s mega AI spending plans are spooking investors. So much so that Microsoft, Nvidia, Oracle, Meta, Amazon and Google-parent Alphabet — all saw their shares fall last week. Fears over AI spending sparked the sell-off that more than $1 trillion wiped from stocks of these companies, with Amazon leading the pack in losses. Amazon, Alphabet, Microsoft and Meta have together reported about $120 billion in capital expenditures or Capex in the fourth quarter alone. As per a report in Financial Times, this figure could exceed more than $660 billion this year, which is higher than the Gross Domestic Product (GDP) of countries like Singapore and Israel.