We have liftoff. The state of the AI infrastructure trade is strong. Very strong.
After Alphabet (Google parent), Meta, Amazon, and Microsoft reported March quarter earnings, three out of the four stocks are up in after hours. But as usual I would not focus too much on the initial after-hours reactions, which are often more indicative of short-term investor positioning than of the true fundamentals.
It’s more important to look at the absolute revenue numbers of the hyperscalers.
All four technology companies showed robust growth, demonstrating that the agentic AI megatrend is incredibly strong and just getting started:
-Google Cloud revenue +63% year-over-year
-Amazon Web Services revenue +28% year-over-year
-Microsoft Azure revenue +40% year-over-year
-Meta overall revenue +33% year-over-year
The growth rates are mind-blowing given the size of these businesses. There’s one reason why.
“We’re in the middle of some of the biggest inflections of our lifetime, we’re well positioned to lead, and I’m very optimistic about what’s ahead for our customers and Amazon,” Amazon CEO Andy Jassy said in the earnings release.
I agree. Agentic AI is a real generational paradigm shift.
Importantly, the capex commentary was also strong. Meta raised 2026 capex from $115-$135 billion to $125-145 billion, while noting that a large part of the increase was due to higher memory prices. Alphabet said 2027 capex would be “significantly” higher, while Amazon reaffirmed its plans for 2026 and Microsoft gave robust guidance for rest of this calendar year.
I listened to the four earnings calls and distilled all the important details and insightful management quotes below. I focused on revenue results as many of the EPS numbers had one-off items based on taxes or other nonrecurring charges, making comparisons versus consensus less instructive.
Tae’s Takeaways:
