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Investors have been willing to overlook Amazon.com Inc.’s and Microsoft Corp.’s hefty spending on artificial-intelligence infrastructure in hopes of a massive future payoff. But it’s not so clear how much value these AI initiatives will add, and Wall Street could soon lose patience.
In a Tuesday report, Rothschild & Co Redburn analyst Alex Haissl downgraded shares of Amazon
AMZN and Microsoft MSFT to neutral from buy, arguing that the return on investment for AI will be nothing like the initial “Cloud 1.0” shift, when companies began migrating their legacy IT operations to the cloud.
