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Analyst: Hyperscalers Profiting Despite AI Hype
Moor Insights’ Patrick Moorhead says investors chase AI bets, but hyperscalers like Microsoft/Azure are already generating real profits.
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What stands out
On CNBC International Live, Patrick Moorhead of Moor Insights & Strategy pushed back on the herd mentality around Artificial Intelligence (AI), saying hyperscalers are not just speculative story stocks but genuine profit engines, with Microsoft’s Azure already producing real earnings. That matters because noise about model hype can mask steady business mechanics: recurring cloud revenue, software monetization and operating leverage that compound over years. Moorhead’s point reframes AI exposure from lottery ticket thinking to owning firms where the economics are visible and scaling into the income statement.