Google and Microsoft have both gone over $100 billion in annual net income. The big technology companies are growing by as much as 20-25% each year. Their combined annual net income is already over $500 billion. By 2027, they will have combined net income over $700 billion and should reach over $1 trillion combined net income by 2029.
This insane net income money printing is despite huge capex and research spending on AI and other investments.
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This made me remember that Capex and R&D are not straight deductions from revenue but are amortized over about 5 years. These companies are still piling up cash even after huge spending on AI infrastructure and R&D – so they can continue to ramp it up.