Overview
- - The four cloud giants, which reported results Wednesday, outlined 2026 capital budgets that now sum to roughly $700–$725 billion after Alphabet and Meta raised plans, Microsoft guided to $190 billion, and Amazon kept $200 billion.
- - Alphabet said Google Cloud revenue jumped 63% to $20 billion as AI tools drove demand, its backlog topped $460 billion, and it began selling custom TPU chips to select customers, lifting the stock about 6%–8%.
- - Meta lifted its full‑year spend to $125–$145 billion due to pricier components and new data‑center buildouts, yet it showed less direct AI revenue, and the stock fell roughly 6%–10%.
- - Amazon’s AWS grew 28% to $37.6 billion with its backlog at $364 billion, while free cash flow slid as purchases of property and equipment rose by $59.3 billion tied to AI buildouts.
- - Microsoft reported Azure growth near 40% with demand outstripping supply, guided 2026 capex to about $190 billion with roughly $25 billion from higher chip costs, and set up a next test for the AI build with key suppliers reporting in May.