The four tech giants, known as the Magnificent Seven, have reported their quarterly earnings, revealing that they are still committed to their massive artificial intelligence spending plans for the year. The companies in question, Microsoft, Alphabet, Meta, and Amazon, boast a combined market capitalization of approximately $12 trillion. Although most of them did not provide a detailed breakdown of their AI expenditures in their latest earnings reports, they appear to be on track to continue their significant investments in the sector.
Previously, an analysis by Bridgewater Associates suggested that these four companies would collectively spend around $650 billion on AI infrastructure in 2026. The ongoing investment has notable 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.
As they face decreasing profit margins due to lower bitcoin prices and increased competition, miners have begun to lease their data centers to AI firms to diversify their revenue streams. Stocks linked to AI and bitcoin mining, such as IREN, TeraWulf, and Cipher Digital, have experienced fluctuations in value following the earnings reports. The tech giants' stock prices have also been affected, with Microsoft down 2.4%, Alphabet up 6%, Meta down 6.6%, and Amazon down 3.7% in after-hours trading.
Bitcoin itself has decreased by approximately 0.9% over the past 24 hours. The next significant test of market sentiment 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 future plans. 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, surpassing the expected $4.06. Satya Nadella, Microsoft's chairman and CEO, emphasized the company's focus on delivering cloud and AI infrastructure, highlighting the significant growth of their AI business, which 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 earnings per share of $2.81, exceeding the expected $2.63. Alphabet's CEO, Sundar Pichai, attributed the company's growth to its AI investments, citing gains in Search and Cloud driven by AI demand.
Google Cloud revenue increased 63% to $20 billion, fueled by enterprise AI solutions and infrastructure. Amazon reported Q1 2026 revenue of $181.5 billion, surpassing the consensus estimate of $177.2 billion, with earnings per share of $2.78, exceeding the expected $1.63.
Amazon's AWS revenue reached $37.6 billion, beating the estimated $36.92 billion. The company noted a significant decrease in free cash flow due to a substantial increase in infrastructure spending, primarily driven by AI investments.
Meta reported Q1 2026 revenue of $56.31 billion, exceeding the consensus estimate of $55.5 billion, with earnings per share of $10.44, surpassing the expected $6.67. 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.
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.