For me, the key is cash conversion, not just AI-driven revenue growth.
Amazon needs AWS growth to accelerate without capex consuming the resulting operating cash flow. Intel needs AI/server demand and foundry investment to translate into improving margins and operating cash flow, rather than simply higher utilisation. SanDisk needs data-centre and enterprise SSD demand to support pricing, margins and sustainable FCF.
The common test is simple: Is incremental AI revenue growing faster than the cash cost of supporting it? Strong revenue or order growth alone is insufficient. I would watch FCF after capex, operating margins and ROIC over several quarters.
If those improve while AI investment remains high, that is much stronger evidence that the AI build-out is becoming a cash-generating cycle rather than merely a capex boom.
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