AI CapEx spending is skyrocketing: The CapEx-to-sales ratio of the largest AI spenders has crossed 18% for the first time in history. Over the last 18 months, this ratio has nearly doubled. For perspective, before the 2020 pandemic, spending accounted for just 8% of these companies' sales. Tech giants Amazon, Apple, Google, Meta, Microsoft, Nvidia, and Oracle, are driving this surge, with their combined market share in the technology sector hitting a record 33%. Meta, META, for example, plans to build a data center the size of Manhattan for AI. The AI arms race is accelerating.(The Kobeissi Letter)