RiskReversal Pod Gene Munster: AI CapEx Spending Can't Stop, Won't Stop
7 snips
Aug 18, 2025 
Gene Munster, managing partner at Deepwater Asset Management, discusses the explosive growth in tech capital spending, expected to hit $300 billion next year. He draws parallels between today’s AI boom and the late 90s tech explosion. The conversation highlights Nvidia's pivotal role amid U.S.-China tensions, along with upcoming Apple launches and the prospects for major IPOs in AI. Munster emphasizes the critical nature of monitoring capital expenditures as indicators of future market performance.
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AI CapEx Has Become Immense
- Gene Munster highlights a massive CapEx surge among big tech, from ~$50B to ~$300B next year driven by AI build-out.
- He sees rapid shifts in behavior and competition around AI as sustaining market intrigue and investment intensity.
AI Fervor Echoes 1995–2000 Boom
- Munster compares today's AI fervor to the 1995–2000 tech run and expects a slow build into possible euphoric multiples.
- He believes AI has enough substance to justify a prolonged, potentially irrational, market run-up.
Big Tech Love Grand Project Names
- Munster and Dan cite FT and Ark coverage calling the AI build-out "absolutely immense" with project names like Prometheus and Stargate.
- They use these public narratives to show how executives (Zuckerberg, Musk) drive the superintelligence storyline.