Last week’s Big Tech earnings confirmed what many investors already suspected: the artificial intelligence boom is far from over. Despite concerns about ballooning capital expenditures, the largest tech companies are doubling down on A.I. — and the market is still rewarding them for it.
Meta Leads With Confidence
Meta raised its 2025 capital spending forecast to as much as $72 billion, up from $65 billion, signaling its unwavering commitment to A.I. infrastructure. This isn’t just bold spending for the sake of it — Meta’s first-quarter revenue jumped 16% year-over-year to $42.3 billion, and its second-quarter outlook is above analyst expectations. CEO Mark Zuckerberg is betting big on A.I.-powered products, including a new standalone Meta A.I. app and future augmented reality hardware.
Microsoft Scales AI Across Operations
While Microsoft’s capex came in slightly lower than last year at $21.4 billion, its investment — excluding leases — was actually up 53%. CEO Satya Nadella revealed that A.I. is now writing about 30% of Microsoft’s code, showing that the company isn’t just investing in A.I., it’s relying on it.
Amazon Makes the Biggest Move
Amazon may be making the boldest bet yet, with plans to spend over $100 billion in 2025 on capital investments, mostly aimed at expanding its A.I. capabilities via AWS. Despite mixed financials last quarter, Amazon is positioning itself to meet surging demand for generative A.I. services — something CEO Andy Jassy calls a “once-in-a-lifetime opportunity.”
Apple Stays Cautious
Apple remains the most reserved of the tech giants, planning around $10.77 billion in capital spending for fiscal 2025. While it’s investing in A.I., the scale and visibility of those efforts are smaller than its peers.
While approaches vary, the largest tech firms are all moving toward an A.I.-driven future. And for now, Wall Street seems to agree with their vision. Meta and Microsoft shares are both up in 2025, and analysts continue to rate Amazon, Apple, Meta, and Microsoft as buys or overweight. The A.I. trade is not only alive — it’s accelerating.
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