In the AI era, free cash flow is shifting from those who "buy computing power" to those who "sell computing power." Bank of America predicts that between 2025 and 2027, massive amounts of capital will flow from internet giants into semiconductor companies at an unprecedented rate.
This doesn't mean that companies like Amazon, Microsoft, and Google have suddenly stopped making money; rather, it's because they are investing heavily in AI areas such as data centers and GPUs—they are the "buyers of computing power." Therefore, even if their core businesses remain strong, a surge in AI capital expenditures will suppress their free cash flow.
