In his third-quarter 2026 shareholder letter, Bill Ackman argues that analysts are fully accounting for the massive artificial intelligence spending by Amazon, Microsoft, Meta Platforms, and Alphabet while underestimating the revenue these investments could generate. The four companies’ combined capital expenditures are expected to rise from about $140 billion in 2023 to an estimated $740 billion in 2026, potentially exceeding $1 trillion in 2027. Yet their earnings have grown by roughly 27% on average, while their shares have gained only about 8% year to date through early November 2026. According to Pershing Square, each new gigawatt of capacity could cost $40 billion to $50 billion and potentially generate $15 billion to $20 billion in annual revenue. The fund bought shares of Microsoft, Meta, and Amazon during declines tied to capital spending concerns, but sold its Alphabet position earlier in 2026.
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