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Big Tech earnings show AI demand holding up despite infrastructure squeeze
Alphabet lifted capex guidance to $195 billion to $205 billion and its shares fell 7%, while Amazon raised its target by $20 billion to $220 billion and shares rose more than 10%.
LiveMint Markets said the most recent earnings from Microsoft, Amazon and Alphabet point to resilient demand for AI infrastructure, even as competition for scarce inputs increases. The outlet cited strong cloud growth at the three companies as evidence that their AI investment plans are starting to pay off.
The article added that executives signaled aggressive capital spending to build out data centres and other capacity tied to AI chips and related infrastructure. It also framed the next hurdle as shifting from a shortage of chips to competition for power, land and memory.
LiveMint Markets reported that industry investors are reacting differently to similar spending moves. It noted that OneCap co-founder and CEO Sandeep Nambiar said Microsoft holds $678 billion of contracted future revenue, up 84%, and warned that component constraints can tighten when multiple types of companies compete for the same supplies.
The piece concluded that infrastructure limitations and changing investor expectations are shaping the AI race’s next phase. It said Nearly $2 trillion has shifted into or out of the six Big Tech companies that have reported so far this earnings season, with Amazon, Microsoft and Alphabet among the biggest winners.