"Companies like Microsoft are going to spend 200 billion into AI this year. That is all great, but you have to also look at that from a cost accounting perspective down the road. Because if you spend 200 billion this year, that means that in the following next 5 years, you will have depreciation, which is then 40 billion per year as a way on your net profit."

… Companies like Microsoft are going to spend 200 billion into AI this year. That is all great, but you have to also look at that from a cost accounting perspective down the road. Because if you spend 200 billion this year, that means that in the following next 5 years, you will have depreciation, which is then 40 billion per year as a way on your net profit. And 200 billion is 60% of current Microsoft revenues, which is huge. That's a huge capex burden. And if they keep on spending that money, if they keep on borrowing, all that must result in huge profitable growth down the road. If they hit that, Microsoft stock will do great. It is priced for a likely 10% plus return going forward. Check my full in …