Bitcoin (BTC-USD) is preparing for new capital inflows as investors shift their funds away from AI stocks, according to veteran macro investor Jordi Visser.
Visser spent over 30 years in global markets and previously served as chief investment officer at Weiss Multi-Strategy Advisers. He now leads AI research at 22V Research and founded Visser-Labs. Corporate financial filings show why capital flows may soon change direction. The industry’s biggest tech companies including Alphabet ($GOOGL), Meta ($META), and Microsoft ($MSFT) are burning through cash faster than they bring it in.
AI Infrastructure Costs Squeeze Big Tech Cash Flow
Alphabet ($GOOGL) spent more money last quarter than it collected, marking its first negative cash period since listing publicly in 2004. Free cash flow represents the cash remaining after a firm funds its data centers and operational expansion.
All three major AI spenders saw their cash buffers contract year-over-year. Meta ($META) experienced the biggest drop, kept $784 million, down from $8.5 billion during the same quarter last year. Sales at Meta grew 28% while overall costs climbed 55%, leading the company to borrow $24.91 billion to support ongoing infrastructure construction.
Microsoft ($MSFT) reported the strongest results among the group. Azure cloud revenue rose 43%, yet spare cash still fell 23% due to higher capital costs.
AI Competition Is Intensifying, and It’s Reducing Tech Stock Gains
Visser emphasizes that artificial intelligence itself is not finished. Instead, the era of effortless multi-fold returns has come to an end.
“The AI trade’s over. The ability of getting seven, eight times your money in that is over,” Visser stated. Free, open-source software keeps closing the tech gap. This makes it hard for top AI firms like Meta and Microsoft to stay ahead.
TipRanks data shows growth room for AI stocks, even as costs press short-term prices. Analysts still give Micron Technology ($MU) a Strong Buy rating, seeing big upside from long-term chip demand despite recent dips.
Alphabet and Meta also hold Strong Buy ratings, though their AI spending continues to squeeze their margins. At the same time, Microsoft projects steady gains as strong cloud sales help balance data center costs.
