Four of the Magnificent Seven tech giants reported quarterly earnings post-market on Wednesday, and they appear to be sticking with their massive artificial intelligence spending targets for this year. The companies—Microsoft, Alphabet, Meta, and Amazon—have a combined market cap of roughly $12 trillion.
Earlier, an analysis by Bridgewater Associates suggested that these four firms could spend about $650 billion together on AI infrastructure in 2026. While none of them explicitly broke out their AI spending in the latest reports, their numbers suggest the spending spree remains on course.
Impact on Bitcoin Miners
This investment wave has implications for the digital asset sector, particularly bitcoin miners. Many miners are pivoting from mining toward hosting computers for AI as part of a revenue diversification strategy. They already have data centers ready and powered up to handle the massive machine load needed for AI computing. Facing margin pressure from lower bitcoin prices and increased competition, miners have started lending their data centers to AI firms.
AI-linked bitcoin mining stocks with exposure to hyperscaler infrastructure deals include IREN, which was down about 0.3%, TeraWulf, and Cipher Digital, which fell 0.5%. After the earnings results, Microsoft was down over 2.4% in after-hours trading, Alphabet up 6%, Meta down 6.6%, and Amazon down 3.7%. Bitcoin itself was down about 0.9% in the last 24 hours.
The next big test for overall market sentiment and miners will come when chipmaker Nvidia reports earnings on May 20.
Microsoft’s Quarter
Microsoft reported fiscal Q3 2026 revenue of $82.9 billion, beating the $81.4 billion consensus. Earnings per share came in at $4.27 against the $4.06 estimate, according to FactSet data. Chairman and CEO Satya Nadella said the company is focused on delivering cloud and AI infrastructure that helps businesses in the agentic computing era. The firm’s AI business brought in $37 billion, up 123% year-over-year.
Alphabet’s Performance
Alphabet pointed to AI as a core growth driver and reported capital expenditures of $35.67 billion for the quarter, slightly below estimates of $36.39 billion. CEO Sundar Pichai noted that AI investments are lighting up every part of the business, linking gains in Search and Cloud to AI-driven demand. Google Cloud revenue rose 63% to $20 billion, fueled by enterprise AI solutions and infrastructure. Alphabet reported Q1 2026 revenue of $109.9 billion, beating the $107 billion consensus, with EPS of $2.81 against the $2.63 estimate.
Amazon’s Infrastructure Push
Amazon reported Q1 2026 revenue of $181.5 billion, beating the $177.2 billion consensus. EPS came in at $2.78 against the $1.63 estimate. AWS revenue hit $37.6 billion, ahead of the $36.92 billion estimate. Free cash flow fell sharply over the past year, driven primarily by a $59.3 billion increase in purchases of property and equipment. The company said this increase primarily reflects investments in artificial intelligence, showing how heavily Amazon is leaning into AI even as it weighs on near-term cash generation.
Meta’s Rising Costs
Meta pointed to rising AI infrastructure costs as a key driver of spending. It reported $19.84 billion in capital expenditures for the quarter and raised its full-year outlook to $125–145 billion, up from its prior guidance of $115–135 billion. The increase reflects higher component pricing this year and additional data center costs to support future capacity. CEO Mark Zuckerberg called it a milestone quarter tied to AI progress, adding that the company is on track to deliver personal superintelligence to billions of people. Meta reported Q1 2026 revenue of $56.31 billion, beating the $55.5 billion consensus, with EPS of $10.44 against the $6.67 estimate.
