Bloomberg Tech Tech Earnings Show Heavy AI Spending Continuing
Oct 30, 2025
Brent Thill, an equity analyst at Jefferies, delves into the heavy AI investments from tech giants like Meta, highlighting market concerns about their margins. Tyler Kendall reports live from South Korea, discussing crucial talks between Trump and Xi on chip supplies. Kelsey Griffiths provides insights into Comcast’s strategies amid slowing broadband losses and potential content acquisitions. The conversation illustrates the tech landscape's evolving dynamics, driven by AI spending and international trade negotiations.
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AI Spending Is A Long-Term Earnings Play
- Tech companies are entering an AI-driven investment cycle that compresses margins short-term but aims for long-term earnings power.
- Brent Thill argues heavy CapEx now can lead to substantial future earnings, using Meta as an example.
Google's AI Revenue Acceleration
- Alphabet shows AI revenue traction with products built on generative models growing over 200% year-over-year.
- Brent Thill contends Google pairs vast data and strong AI "engine" to expand search and AI monetization across properties.
Azure Growth Is Supply-Constrained Demand
- Microsoft shows robust demand for Azure despite supply constraints, with high backlog and bookings signaling unmet customer demand.
- Brent Thill says capacity limits, not demand, are capping reported Azure growth.