Raoul Pal argues crypto offers better risk-adjusted returns than AI infrastructure plays for ordinary investors.
Former Goldman Sachs executive Raoul Pal said retail investors should favor crypto over AI stocks, despite a projected $720 billion spend by U.S. hyperscalers on AI infrastructure by 2026. Pal noted chip companies and hyperscalers are fully booked for years, limiting upside for late entrants.
The five largest U.S. tech firms—Amazon, Alphabet, Meta, Microsoft, and Oracle—are leading the AI capital expenditure surge, funded by cash flow rather than debt. Pal compared the trend to the dot-com era but called it structurally more durable.
Pal argued crypto presents a superior risk-adjusted bet, stating investors may earn more from crypto than hyperscalers over time. Bitcoin miners are also pivoting to AI compute, signaling broader industry shifts.