The recent earnings reports from four of the world's largest tech companies, known as the Magnificent Seven, show that they are still committed to their massive artificial intelligence spending plans for the year. Microsoft, Alphabet, Meta, and Amazon, which have a combined market value of approximately $12 trillion, reported their quarterly earnings on Wednesday.
Although most of them did not provide a detailed breakdown of their AI spending, their overall investment in the sector appears to be on track. Previously, an analysis by Bridgewater Associates estimated that these four companies would spend around $650 billion on AI infrastructure in 2026. The significant investment in AI has important implications for the digital asset sector, particularly for bitcoin miners who are increasingly shifting their focus from mining to hosting computers for AI as part of their revenue diversification strategy.
Many bitcoin miners already have the necessary data centers and infrastructure in place to support large-scale AI computing. Due to decreasing bitcoin prices and increased competition, miners have begun to lend their data centers to AI companies to diversify their revenue streams.
Stocks of bitcoin mining companies with exposure to hyperscaler infrastructure deals, such as IREN, TeraWulf, and Cipher Digital, experienced minor fluctuations following the earnings reports. Meanwhile, the tech giants' stock prices also saw changes, with Microsoft down 2.4%, Alphabet up 6%, Meta down 6.6%, and Amazon down 3.7% in after-hours trading. Bitcoin's price decreased by about 0.9% in the last 24 hours. The next significant test of market sentiment and miners will come when chipmaker Nvidia reports its earnings on May 20.
The earnings reports from the tech giants provided valuable insights into their AI investments and strategies. Microsoft reported fiscal Q3 2026 revenue of $82.9 billion, exceeding the consensus estimate of $81.4 billion, with earnings per share of $4.27, beating the estimated $4.06.
Microsoft's AI business generated $37 billion in revenue, representing a 123% year-over-year increase. Alphabet reported Q1 2026 revenue of $109.9 billion, surpassing the consensus estimate of $107 billion, with earnings per share of $2.81, exceeding the estimated $2.63.
Google Cloud revenue rose 63% to $20 billion, driven in part by demand for enterprise AI solutions and infrastructure. Amazon reported Q1 2026 revenue of $181.5 billion, beating the consensus estimate of $177.2 billion, with earnings per share of $2.78, exceeding the estimated $1.63. AWS revenue reached $37.6 billion, slightly above the estimated $36.92 billion.
Amazon's free cash flow decreased significantly due to a surge in infrastructure spending, primarily driven by investments in artificial intelligence. Meta reported Q1 2026 revenue of $56.31 billion, beating the consensus estimate of $55.5 billion, with earnings per share of $10.44, exceeding the estimated $6.67. The company raised its full-year capital expenditures outlook to $125-145 billion, citing higher component pricing and additional data center costs to support future capacity. Meta's CEO, Mark Zuckerberg, described the quarter as a milestone in the company's AI progress, stating that they are on track to deliver personal superintelligence to billions of people.