Tech strategist Dan Ives said the AI capital expenditure boom remains “full steam ahead” after the latest quarterly results from Tesla Inc. (TSLA) and Alphabet Inc. (GOOG, GOOGL), posting on X that the “AI Revolution Capex narrative continues full steam ahead as evidenced last night again by Alphabet and Tesla.” Deepwater Asset Management’s Gene Munster echoed similar sentiments, saying the AI infrastructure trade remains intact and that the tech industry is still in the “3rd inning” of the AI investment cycle. Munster noted that higher capital expenditure outlooks from Alphabet and Tesla reinforce the broader AI infrastructure story, and while increased spending has pressured margins, the industry remains in the early stages of the AI investment cycle. He added that rising capex estimates of both companies are beneficial to the AI investment trade, and that expectations from Microsoft Corp., Amazon.com Inc., and Meta Platforms Inc. have gone up with respect to capex. Ives said higher AI infrastructure spending may weigh on margins in the near term, but accelerating adoption of AI by enterprises and consumers will be a key theme of second-quarter earnings. Tesla shares were down more than 6% in Thursday’s pre-market trade, while Alphabet’s Class A shares were down about 5%.