The four tech giants, namely Microsoft, Alphabet, Meta, and Amazon, have reported their quarterly earnings, indicating that their massive artificial intelligence spending plans for the year remain intact. 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 them did not provide a detailed breakdown of their AI spending in their latest earnings reports, it appears they are on track to continue their significant investments in the sector.
This 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 large number of machines required for AI computing. As they face reduced profit margins due to lower bitcoin prices and increased competition, miners have begun to lend their data centers to AI firms to diversify their revenue streams.
Stocks of AI-linked bitcoin mining companies, such as IREN, TeraWulf, and Cipher Digital, have been affected by the latest earnings reports. The next major test of market sentiment and the impact on miners will come when chipmaker Nvidia reports its earnings on May 20.
The recent earnings reports from the tech giants provide insight into their performance and AI investment strategies. Microsoft reported fiscal Q3 2026 revenue of $82.9 billion, exceeding the consensus estimate of $81.4 billion, with EPS of $4.27 compared to the estimated $4.06. Microsoft's AI business generated $37 billion in revenue, 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 compared to the estimated $2.63.
Google Cloud revenue rose 63% to $20 billion, driven in part by AI solutions and infrastructure. Amazon reported Q1 2026 revenue of $181.5 billion, exceeding the consensus estimate of $177.2 billion, with EPS of $2.78 compared to the estimated $1.63. AWS revenue reached $37.6 billion, beating the estimated $36.92 billion. Amazon's free cash flow declined sharply due to a significant increase in infrastructure spending, primarily driven by AI investments.
Meta reported Q1 2026 revenue of $56.31 billion, beating the consensus estimate of $55.5 billion, with EPS of $10.44 compared to the estimated $6.67. The company's capital expenditures for the quarter were $19.84 billion, and it raised its full-year outlook to $125-145 billion, driven by higher AI infrastructure costs.