The four tech giants, including Microsoft, Alphabet, Meta, and Amazon, have reported their quarterly earnings, indicating that they are still on course to meet their substantial artificial intelligence spending targets for the year. The combined market capitalization of these companies is approximately $12 trillion.
According to a previous analysis by Bridgewater Associates, the four companies are expected to spend around $650 billion on AI infrastructure in 2026. Although most of them did not provide a detailed breakdown of their AI spending in their latest earnings reports, they appear to be on track to continue investing heavily in the sector. This significant investment has noteworthy 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. Bitcoin miners already have the necessary data centers and infrastructure to support large-scale AI computing.
Due to decreased bitcoin prices and increased competition, miners have begun lending their data centers to AI firms to diversify their revenue streams. Stocks related to AI and bitcoin mining, such as IREN, TeraWulf, and Cipher Digital, have experienced fluctuations in response to the earnings reports. The upcoming earnings report from chipmaker Nvidia on May 20 is expected to be a significant test of overall market sentiment and its impact on miners. The earnings reports from the tech giants revealed the following key points: Microsoft reported fiscal Q3 2026 revenue of $82.9 billion, exceeding the consensus estimate of $81.4 billion, with EPS of $4.27, surpassing the estimate of $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, beating the consensus estimate of $107 billion, with EPS of $2.81, exceeding the estimate of $2.63.
Google Cloud revenue rose 63% to $20 billion, driven in part by enterprise AI solutions and infrastructure. Amazon reported Q1 2026 revenue of $181.5 billion, surpassing the consensus estimate of $177.2 billion, with EPS of $2.78, exceeding the estimate of $1.63. AWS revenue reached $37.6 billion, beating the estimate of $36.92 billion.
Amazon's free cash flow declined 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 EPS of $10.44, exceeding the estimate of $6.67. The company pointed to rising AI infrastructure costs as a key driver of spending and raised its full-year outlook to $125-145 billion. CEO Mark Zuckerberg described the quarter as a 'milestone' tied to AI progress, stating that the company is on track to deliver 'personal superintelligence' to billions of people.