Microsoft, Google Earnings Test AI Spending Returns as Tech Groups Seek $200 Billion
Updated
Updated · The New York Times · Oct 28
Microsoft, Google Earnings Test AI Spending Returns as Tech Groups Seek $200 Billion
3 articles · Updated · The New York Times · Oct 28
Summary
$200 billion in fresh AI funding plans from Meta, SpaceX and Broadcom this week have sharpened attention on Microsoft and Google earnings, where investors are looking past revenue to whether heavy capital spending is paying off.
Nasdaq Composite futures pointed to a third straight day of gains before the reports, underscoring how much the market is leaning on the hyperscalers to justify the sector’s AI build-out.
SK Hynix said it has effectively sold out high-bandwidth and other AI memory through 2029 after blowout earnings, suggesting supply constraints could become a bigger obstacle even if financing fears ease.
That leaves Microsoft and Google results as a key readout not just on current profits, but on whether Big Tech can sustain the pace of AI investment amid rising borrowing costs and tight chip supply.