Sure, Nvidia Corp (NVDA) has become the poster child for the AI boom. But here's the thing: it might not be the best evidence that AI investments are actually paying off. According to Beth Kindig, CEO and chief investment strategist at I/O Fund, the real action is happening at Meta Platforms Inc (META)—where AI spending isn't just inflating capital budgets anymore, but actually showing up in earnings.
Kindig's take cuts through the noise: we're early to AI monetization, not late. While headlines obsess over runaway capital spending, the data she's tracking tells a different story. Returns are starting to materialize, and they're appearing faster than most people realize.
Earlier this month, her firm connected the dots between Nvidia's strongest earnings performance in nearly two years and commentary from Broadcom, positioning both as evidence that AI demand has staying power. But the most compelling proof? It's coming from Meta, a company that doesn't usually top the AI winners list.
AI Spending Is Actually Generating Returns
Meta has turned into ground zero for the AI spending debate as Big Tech keeps shocking markets with the sheer scale of data center buildouts. What's getting missed, Kindig argues, is that Meta's recent earnings already demonstrate returns on those investments.
This isn't about vague promises of future payoffs. Meta is delivering measurable improvements right now—better ad targeting, stronger engagement, more efficient monetization—all tied directly to AI enhancements.
A Revenue Story Nobody's Talking About
Here's where it gets interesting: Kindig's analysis suggests Meta may have climbed to second place behind Nvidia in AI-related revenue, potentially leapfrogging Microsoft Corp (MSFT). If that's accurate, Meta isn't just spending heavily on AI—it's one of the first mega-cap companies actually monetizing it at scale.
That distinction matters tremendously. It upends the assumption that AI investments won't deliver meaningful returns for years.
Maybe the Market Isn't Late After All
The "AI bubble" narrative rests on one premise: spending is outrunning profits by a dangerous margin. Meta throws a wrench into that thinking. When one of the biggest AI spenders is already seeing tangible returns, it suggests the broader monetization wave might arrive much sooner than Wall Street consensus expects.
Viewed through that lens, AI skepticism starts looking less like wisdom and more like outdated thinking. If Meta's results are any indication, the payoff from AI isn't some distant promise—it's already happening.
