A sharp increase in market value for two major technology giants, driven by their aggressive investment plans, gives me an itchy raised eyebrow. Microsoft and Meta experienced a combined boost of half a trillion dollars in market capitalization within just ten minutes.

Earnings season for a handful of megacap tech firms has morphed into capex season with the AI arms race showing no signs of slowing.

Microsoft forecast on Wednesday a record $30 billion in capital spending for the current fiscal first quarter, after booming sales in its Azure cloud computing business showcased the growing returns on its massive bets on artificial intelligence.