Microsoft Q1 Profit Up 32% Despite $45.2B Data Center Spend
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Amazon reported Q3 revenue of $201.9B (+12% YoY) but profit missed expectations, while AI infrastructure investments increased. The stock fell 6% in after-hours trading, reflecting investor concerns over margin pressure from heavy AI spending.
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Amazon's increased AI-related capital expenditures (capex) have been confirmed, leading to a Q3 profit miss and a significant stock decline. This trend, mirrored by other major tech firms, is generating Wall Street concern regarding the sustainability of current capex levels relative to near-term returns and its impact on free cash flow. The long-term profitability of AI investments remains uncertain.
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