Lou Whiteman

The definite answer is, it's going to pay off for somebody.

The question is, who?

But one thing that we can say for sure is, we know that there is a lot of money going out from the hyperscalers.

Some of them have even given us some pretty good details on exactly where the money is going.

Alphabet, for example, spending about 60% of its capex on servers.

If you look at 2026,

it's going to spend over $100 billion on servers.

Let's think that through.

One of the leaders in this space is Dell.

I know we don't talk about Dell very much, but it's a leader in servers.

You look at this stock right now, trading at only 10 times its forward earnings.

I wouldn't be surprised if Dell had a bumper year this year in 2026 with all the spending that these hyperscalers will put out on servers.

Yeah, it's a great point, Travis.

The margins in all of these businesses are extraordinary.

And so it does make perfect sense to double down.

What is so hard to parse out, though, is because those margins are so high, all of them have an incentive in some way to compete better when it comes to those things.

Exactly.

It's the famous line from Jeff Bezos, your margin is my opportunity.

If we circle back to Nvidia, the operating margin right now is around 60%.

It was 20% several years ago, which is also quite good for an operating margin, three times that now.