Overview
- Q2 results exceeded forecasts as cloud computing and AI services propelled revenue and profit growth across the sector.
- Microsoft’s April–June net income rose 24% to $27.2 billion, enabling it to become the second company ever to surpass a $4 trillion market capitalization.
- Meta’s quarterly profit jumped 36% to $18.3 billion and Alphabet reported $28.2 billion in net income and $96 billion in revenue underpinned by AI and advertising margins.
- The sector is set to invest roughly $400 billion in AI infrastructure this year, funding new data centers and advanced hardware development.
- To offset massive AI outlays, firms have eliminated nearly 100,000 positions since 2022, and Microsoft is renegotiating its OpenAI deal to secure future AI intellectual property rights.