the success or failure of a project and/or business.
And these Mag3 once enjoyed a structural edge from low capital intensity, fueling sky-high ROIC and cash-rich balance sheets. That advantage is rapidly eroding as AI infrastructure capex surges, ushering in classic capital-heavy risks.
We all know that Meta’s core cash engine remains its ads sector, while Google’s comes from search, YouTube, and cloud; Microsoft leans on its enterprise software and cloud dominance. Yet, the bottom line is that even though the Mag3's profit moats are deep enough to absorb the capex shock, but the low-capex moat is gone. The game has shifted from capital efficiency to capital endurance...... hence, inevitably, the only winner(s) in AI utilization will preserve premium multiples.
At this point, I personally still believe all these three, META, GOOG and MSFT will thrive! Well, if I've to pick only one, I'll have to say, it's google;)
