Microsoft stock plunges 10% as Azure cloud growth decelerates while capital expenditures surge 66% to $37.5B, raising AI investment concerns.

Meta stock surges after revealing plans to spend $115-135B on AI infrastructure in 2026, nearly doubling 2025 investment amid strong revenue growth.

Defying the tech downturn, Meta reported a 24% revenue increase and a strong Q1 forecast, crediting its investments in AI for significantly improving ad targeting and performance.

Microsoft's stock saw its biggest drop since 2020, wiping out $400 billion in market value, as investors question the high cost and slow monetization of its heavy investments in artificial intelligence and its exposure to OpenAI.

Microsoft reports $7.6B net income increase from OpenAI investment as the AI lab experiences unprecedented revenue growth, with total quarterly revenue reaching $81.3B.

Microsoft, Amazon, Alphabet, and Meta are projected to spend $475 billion on AI infrastructure in 2026, double the 2024 figure. Investors are demanding evidence that massive AI investments will generate measurable returns in upcoming earnings reports.