Major Hyperscalers Just Reported Earnings. Nvidia Was The Winner | The Motley Fool

April 29 was a major day for the stock market as the “Big Three” in the cloud industry, Amazon (AMZN +1.25%), Microsoft (MSFT +1.62%), and Alphabet (GOOG +0.27%) (GOOGL +0.20%), all released their latest quarterly reports. The market cheered Alphabet and Amazon’s results — both companies saw their shares jump post-earnings — while Microsoft wasn’t so lucky. However, one corporation that was arguably a big winner, despite its quarterly update not being due for another three weeks, is Nvidia (NVDA 0.48%). Here is why.

A consistent theme emerges

Alphabet, Microsoft, and Amazon are spending small fortunes on artificial intelligence (AI) capital expenditures. And by the looks of it, they will maintain that pace for the foreseeable future. Management commentary supports this outlook. Consider Alphabet, whose CFO, Anat Ashkenazi, said that most of the company’s capex spending in the first quarter was to support its AI opportunities. She also predicted that spending would significantly accelerate in 2027 compared to this year.

Turning to Microsoft, the company expects $190 billion in capex for the calendar year 2026, much of which will be spent on CPUs (Central Processing Units) and GPUs (Graphics Processing Units). The company’s CEO, Satya Nadella, also highlighted the large AI addressable market for which the company needs to spend heavily to tap into. So we could also see increased spending from Microsoft next year and beyond.

Today’s Change

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