By Aditya Soni and Deborah Mary Sophia
Publication Date: 2026-04-30 10:03:00
By Aditya Soni and Deborah Mary Sophia
April 30 (Reuters) – Alphabet’s blowout cloud growth has reset expectations across major tech companies, leaving investors to recalibrate which firms are delivering the clearest returns.
All four of the U.S. tech giants that reported results on Wednesday signaled that spending on artificial intelligence would not slow down, with combined outlays now set to surpass $700 billion this year, up from around $600 billion previously.
Alphabet shares jumped more than 6% in premarket trading on Thursday, while Meta stock fell nearly 9%. Amazon shares rose 2.6%, while those of Microsoft dipped 1.8%.
The reactions underscore a growing divide as the biggest tech companies pour record sums into AI infrastructure, with investors increasingly rewarding those that are translating spending into clear revenue growth.
Amazon and Microsoft both reported faster growth in their cloud-computing revenue in the March quarter at 28% and…
