Oguz Erkan: AI sales growth strong, AI operator capital expenditure return expected to turn positive within 24 months

Researcher Oguz Erkan stated that based on current capital costs, operating profit margins of ultra large scale cloud service providers, and depreciation periods, the return on investment of AI capital expenditures turns positive when the ratio of revenue to depreciation is about 1.7 to 1.8 times. Currently, AI revenue is about 1.2 times the depreciation of capital expenditures. If AI sales growth is strong, it is expected to turn positive within 24 months.