Tom Essaye On Why Cloud Capacity Is The Next Critical Bottleneck In AI Infrastructure
Why Google and Amazon rank top among Cloud hyperscalers for AI
Sevens Report Research founder Tom Essaye explains why cloud capacity is the next critical bottleneck in AI infrastructure and ranks Google (GOOG), Amazon (AMZN), and Microsoft (MSFT) based on their cloud revenue opportunities.
So, I do like the hyperscalers, but I like the ones with the best cloud businesses. So really it’s not even so much that I love the hyperscalers, it’s that I love cloud right now because I think the cloud capacity is could be number uh number for first of all, the next bottleneck that has to be resolved in this AI day to build out after semiconductors and memory. And also it it provides an opportunity to generate revenue right now. So if I had to rank them in order, it would probably be Amazon, or excuse me, Google, Amazon and then Microsoft. The reason Microsoft is last is because I do think they have some risk on their office suite given, you know, some of the the AI software purge that we’re seeing. Uh but I think those three are attractive, mainly because of their cloud business, it’s providing revenue now.
Essaye is staying cautious about the Magnificent Seven names heading into earnings.
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