Morgan Stanley: AI Infrastructure ROIC Can Reach Up to 46%, Maintains Overweight Rating on Hyperscalers
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Morgan Stanley: AI Infrastructure ROIC Can Reach Up to 46%, Maintains Overweight Rating on Hyperscalers
According to TechFlow Research, Morgan Stanley released a research report on July 27, quantifying for the first time the Incremental Return on Invested Capital (ROIC) of Generative AI investments. The report constructed three estimation frameworks: the ROIC for hyperscale cloud service providers' GPU leasing business is approximately 31%, the ROIC for proprietary infrastructure model API business is approximately 46%, and the ROIC for third-party compute API business is approximately 25%. Under base case assumptions, a single 1 gigawatt (GW) data center is configured with approximately 410,000 NVIDIA GB300 GPUs, with a utilization rate of 75% and an hourly leasing price of $8.5. The combined capital expenditure of the three major cloud giants is expected to exceed $1.4 trillion. Morgan Stanley maintains an Overweight rating on Microsoft, Amazon, Meta, and Google. The report points out that as AI moves from the training phase to the inference phase, demand for GPU compute power will continue to grow. Providers with self-built compute infrastructure will achieve considerable profits by leveraging their pricing power in an ecosystem where compute is scarce. If Morgan Stanley's calculations hold true, the hundreds of billions of dollars in AI capital expenditure will shift from being perceived as "costs" to "growth assets".
Navigating Web3 tides with focused insightsTechFlow news, according to TechFlow Research, Morgan Stanley released a research report on July 27, quantifying the incremental return on invested capital (ROIC) of generative AI investments for the first time. The report constructed three calculation frameworks, with the ROIC for hyperscale cloud service providers' GPU leasing business at approximately 31%, the ROIC for proprietary infrastructure model API business at approximately 46%, and the ROIC for third-party computing power API business at approximately 25%. Under baseline assumptions, a single 1 gigawatt (GW) data center is configured with approximately 410,000 NVIDIA GB300 GPUs, with a utilization rate of 75% and an hourly leasing price of $8.5. The combined capital expenditure of the three major cloud giants is expected to exceed $1.4 trillion.
Morgan Stanley maintained an overweight rating on Microsoft, Amazon, Meta, and Google. The report noted that as AI transitions from the training phase to the inference phase, GPU computing power demand will continue to grow. Companies with self-built computing infrastructure will secure considerable profits by leveraging their pricing power in an ecosystem where computing power is scarce. If Morgan Stanley's calculations hold true, these hundreds of billions of dollars in AI capital expenditures will shift from being perceived as "costs" to "growth assets".
