The AI earnings bonanza is splitting investors

Big tech’s AI-driven earnings split investor sentiment: Amazon and Google were rewarded after reporting stronger-than-expected cloud growth, while Microsoft and Meta saw share weakness amid rising AI-related spending and supply concerns. Amazon’s AWS topped estimates and its backlog jumped, and Google’s cloud posted 63% y/y growth with a doubled backlog; both stocks gained. Microsoft reported 40% cloud growth and a backlog surge largely tied to OpenAI but faced investor selling on supply constraints. Meta’s steeply higher 2026 capital-expenditure outlook ($125–$145B) rattled markets and sent its stock sharply lower. Attention now turns to Nvidia’s forthcoming results given its central role in AI hardware demand. Overall market impact: robust cloud/AI revenue is propping winners, but elevated capex and supply pressures are creating a bifurcated market reaction.