The Magnificent Seven (Mag 7) tech giants are poised to meet their substantial artificial intelligence (AI) investment goals this year, as revealed in their recent earnings reports. Microsoft, Alphabet, Meta, and Amazon—the four companies that disclosed post-market quarterly earnings on Wednesday—boast a combined market capitalization of roughly $12 trillion.
Bridgewater Associates previously projected that these firms might collectively allocate approximately $650 billion to AI infrastructure by 2026. Although specific AI spending figures were not detailed in the latest reports, all indications suggest they will persist with their hefty investments in this sector. These developments have notable repercussions for the digital asset space, particularly bitcoin miners who are increasingly transitioning from mining to providing hosting services for AI applications as part of a broader revenue diversification strategy. With existing data centers capable of accommodating substantial computing equipment required for AI, miners are leveraging these facilities to partner with AI companies amidst challenges like reduced bitcoin prices and heightened competition.
AI-related stocks in the bitcoin mining sector tied to hyperscaler infrastructure deals saw varied movements: IREN (IREN) declined by about 0.3%, TeraWulf (WULF), and Cipher Digital (CIFR) fell 0.5%. Post-earnings, Microsoft’s shares dipped over 2.4% in after-hours trading, Alphabet gained 6%, Meta dropped 6.6%, and Amazon declined by 3.7%. Meanwhile, Bitcoin experienced a decrease of approximately 0.9% in the past day.
The market sentiment test for these companies will continue with Nvidia’s earnings announcement on May 20.
Here’s what each tech giant reported:
Microsoft announced fiscal Q3 2026 revenue of $82.9 billion, surpassing the expected $81.4 billion, with an EPS of $4.27 against a forecasted $4.06. CEO Satya Nadella highlighted that AI-related business generated $37 billion, marking a 123% increase year-over-year.
Alphabet emphasized AI as a growth catalyst and reported capital expenditures of $35.67 billion for the quarter, slightly below the anticipated $36.39 billion. CEO Sundar Pichai linked revenue boosts in Search and Cloud to an AI-driven surge, with Google Cloud revenue climbing 63% to $20 billion.
Alphabet’s Q1 2026 revenue stood at $109.9 billion, exceeding the consensus estimate of $107 billion, alongside an EPS of $2.81 against the forecasted $2.63.
Amazon reported Q1 2026 revenue of $181.5 billion, surpassing expectations of $177.2 billion, with EPS reaching $2.78 versus a projected $1.63. AWS revenue hit $37.6 billion, just above estimates. Despite a notable dip in free cash flow due to increased infrastructure spending—primarily on AI investments—the company underscored its commitment to this area.
Meta disclosed capital expenditures of $19.84 billion for the quarter and raised its full-year outlook to $125–145 billion from a previous estimate of $115–$135 billion, citing higher component pricing and future data center costs driven by AI expansion. CEO Mark Zuckerberg described the period as a key milestone in AI advancement.
Meta’s Q1 2026 revenue reached $56.31 billion, beating the consensus of $55.5 billion, with an EPS of $10.44 against the expected $6.67.