Big Tech investors are questioning whether large CapEx (capital expenditures) spending on emerging AI technology — namely from Meta Platforms (META) and Microsoft (MSFT) — are making impacts as the tightening artificial intelligence race heats up

Jefferies senior analyst Brent Thill joins Catalysts to give insight into the state of AI adoption in mega-cap tech stocks and how it may need some more time before the technology gains major traction and starts showing results in earnings.

Thill breaks down the situation with the tech giants' AI efforts:

"Microsoft told you a year ago that it would be the fastest business to $10 billion. They haven't said a peep about hitting that target. Microsoft is going to be a $250 billion dollar-plus company. That means it's a low single digit percent of their total revenue. Amazon (AMZN), they don't even break out the number. Google (GOOG, GOOGL), how is the AI product going? Well, there's no financial impact right now. Like, so Salesforce (CRM), they're not selling AI. Adobe (ADBE) it's tiny... it's tiny for everyone. "

He brings it back to Snowflake's (SNOW) current situation: "It's not like this is Snowflake losing and everyone else is winning. No one's winning in software in AI because it's so early. There's no revenue, but there will be. And so the point is, do you want to invest?"

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This post was written by Nicholas Jacobino