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AI SPENDING TO SURPASS DOT-COM BUBBLE, WARNS MORGAN STANLEY

Morgan Stanley says hyperscaler AI investment is set to exceed dot-com era levels, with capex intensity projected to hit up to 45% of sales by 2028.

Analyst Todd Castagno warns spending is surging far faster than revenue, with over $2 trillion expected from hyperscalers alone—driving a major concentration of investment in AI.

While semiconductor firms stand to benefit, rising costs and slower monetization could make future earnings more sensitive to revenue growth.