AI Spending Pays Off for Major Cloud Providers as ROIC Increases by 900 Basis Points
ByAinvest
Friday, Feb 6, 2026 1:31 pm ET1min read
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Hyperscalers have doubled their combined capital expenditures from $150 billion in 2022 to over $360 billion in 2025, leading to a 900 basis point increase in their average return on invested capital (ROIC). The investments in AI infrastructure have improved profitability metrics and strong cloud revenue from enterprise customers. The Alger 35 ETF holds positions in companies central to AI infrastructure development, such as Nvidia, Microsoft, and Alphabet.
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