Will AI Costs, Supply Constraints, and Competition Prevent Attractive Long-Term Returns for Hyperscalers?

In our last article, we concluded that AI monetization is becoming increasingly tangible and that revenues could close the gap with infrastructure investment in the next 5-8 years. That conclusion, however, assumes the companies currently making the investments, the hyperscalers, can convert those revenues into durable profits.

In this piece, we examine whether costs, supply chain challenges, and competition could prevent revenue growth from translating into attractive long-term returns for investors.

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