Big Tech AI Capex Tops $650 Billion as Q1 Earnings Beats Pressure Bitcoin Risk Trade
Big Tech Q1 earnings beat forecasts, but aggressive AI capital spending plans exceeding $650 billion pressured tech stocks and Bitcoin.Summary
Major technology companies including Amazon, Meta, Microsoft, and Alphabet exceeded Wall Street revenue expectations in their first-quarter earnings reports. However, their aggressive capital expenditure plans, particularly for AI infrastructure, which are projected to surpass $650 billion in 2026, have caused investor concern. Meta's stock saw a significant drop after it raised its capital spending forecast, and Microsoft and Amazon also experienced declines due to AI buildout costs. Alphabet was the exception, with its stock rising due to strong cloud performance. The substantial investment in AI is raising worries about whether depreciation and operating costs will outpace near-term AI revenue, impacting tech-correlated risk assets like Bitcoin.
(Source：BeInCrypto)