I would look beyond revenue growth and focus on whether AI infrastructure spending is generating measurable returns. The strongest evidence would be sustained growth in AI-related revenue, improving operating margins and free cash flow, rather than simply higher capital expenditure. I would also want to see customers increasing AI usage and renewing contracts because the technology is delivering real productivity gains.


For companies like Microsoft, Amazon and Alphabet, the key test is whether revenue from cloud and AI services can grow faster than the cost of building and operating the infrastructure. If returns improve while capital intensity gradually declines, that would give me greater confidence that today’s spending is creating long-term value rather than just expanding capacity.


AI demand is clearly growing, but profitable demand is what ultimately matters to shareholders.