The four tech giants, namely 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. With a combined market capitalization of approximately $12 trillion, these companies are poised to spend around $650 billion on AI infrastructure in 2026, according to an analysis by Bridgewater Associates.
Although most of the companies did not provide a detailed breakdown of their AI spending in their latest earnings reports, they appear to be on track to continue their significant investments in the sector. This development 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. The miners already have the necessary data centers and infrastructure in place to support the massive computational requirements of AI.
Faced with decreasing profit margins due to lower bitcoin prices and increased competition, miners have started offering their data centers to AI firms to diversify their revenue streams. Stocks of bitcoin miners with exposure to hyperscaler infrastructure deals, such as IREN, TeraWulf, and Cipher Digital, have experienced fluctuations in response to the earnings reports. The earnings reports also had an impact on the tech giants' stock prices, with Microsoft down 2.4%, Alphabet up 6%, Meta down 6.6%, and Amazon down 3.7% in after-hours trading. Bitcoin prices also decreased by about 0.9% in the last 24 hours.
The next major test of market sentiment and miners' performance will come when chipmaker Nvidia reports its earnings on May 20. The tech giants' earnings reports and statements from their CEOs highlight the growing importance of AI in driving their business growth and investments.
Microsoft reported fiscal Q3 2026 revenue of $82.9 billion, beating estimates, with its AI business generating $37 billion in revenue, up 123% year-over-year. Alphabet reported Q1 2026 revenue of $109.9 billion, exceeding expectations, with its Google Cloud revenue rising 63% to $20 billion, driven in part by AI solutions.
Amazon reported Q1 2026 revenue of $181.5 billion, beating estimates, with its AWS revenue reaching $37.6 billion, and noted that its free cash flow fell sharply due to a surge in infrastructure spending on AI. Meta reported Q1 2026 revenue of $56.31 billion, exceeding expectations, with its capital expenditures reaching $19.84 billion, and raised its full-year outlook to $125-145 billion, driven by higher AI infrastructure costs.