Big U.S. Tech Companies Likely to Retain AI Lead Despite China's Push

Dow Jones
4 hours ago

0330 GMT - Large U.S. technology companies are expected to maintain advantages in artificial intelligence despite rising competition from China, Moody's Ratings says. Helped by lower infrastructure costs, policy support and open-source models, Chinese tech companies are accelerating AI investment and narrowing the gap with U.S. rivals. However, Moody's says substantially higher U.S. spending, stronger cloud businesses and continued access to advanced chips should preserve U.S. leadership in compute capacity and AI monetization. Moody's says heavy AI capital expenditure will likely pressure free cash flow and increase leverage for both U.S. and Chinese tech companies over the next 12 to 24 months. Still, strong earnings, substantial cash reserves and access to funding should help cushion the financial impact, it says.

 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10