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Cloud Titans Lift AI Spending Plans as Earnings Show Early Payoffs

Investors favor companies turning heavy AI infrastructure outlays into visible revenue gains.

Overview

  • Alphabet and Amazon raised capital expenditure guidance for next year, with Alphabet citing a more than threefold jump in generative‑AI product revenue and 34% Google Cloud sales growth to $15.2 billion.
  • Amazon highlighted new AI commercialization efforts, with CEO Andy Jassy pointing to a shopping chatbot that he expects could add about $10 billion in annual sales.
  • Microsoft signaled that investments will accelerate in fiscal 2026 and acknowledged capacity constraints that have forced it to prioritize core offerings.
  • Meta missed earnings due to a tax charge, lifted its capex outlook and projected faster investment next year, triggering a sharp selloff as expenses climbed.
  • Executives said AI demand continues to outpace available compute, and Citi forecast a 24% rise in cloud data‑center capex in 2026 that should benefit Nvidia, Broadcom and AMD.