--- title: "Alphabet, Amazon, and Microsoft saw their combined market value increase by nearly $1.5 trillion this week" type: "News" locale: "en" url: "https://longbridge.com/en/news/294551949.md" description: "This week, Alphabet, Amazon, and Microsoft saw their combined market value increase by nearly $1.5 trillion due to strong growth in cloud business and raised AI capital expenditure forecasts. In contrast, Meta, Apple, and Tesla experienced significant declines in market value due to market concerns over the return on their AI investments or performance guidance. Wall Street's divergence has intensified, with the focus shifting to whether substantial AI investments can yield long-term profits" datetime: "2026-07-31T20:18:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294551949.md) - [en](https://longbridge.com/en/news/294551949.md) - [zh-HK](https://longbridge.com/zh-HK/news/294551949.md) --- # Alphabet, Amazon, and Microsoft saw their combined market value increase by nearly $1.5 trillion this week After the financial reports of the world's largest technology companies were released, Wall Street's divide over the winners and losers in the artificial intelligence sector has intensified. These companies confirmed or raised their capital expenditure forecasts, indicating that large-scale investments have not ceased. This week, the total inflow and outflow of funds for the six tech giants that have released quarterly earnings approached $2 trillion. The three major cloud service providers—Amazon, Microsoft, and Alphabet—saw their market values soar significantly after reporting strong growth in their cloud businesses. This indicates that investors believe returns may be just around the corner after these companies committed to investing billions of dollars in AI. Microsoft's market value increased by over $600 billion this week, while Amazon and Alphabet each added over $400 billion. On the other hand, Meta's stock price plummeted after its earnings report, as its AI investment strategy failed to convince investors, resulting in a market value evaporation of about $85 billion this week. Apple experienced a larger decline, with a market value loss of over $350 billion due to performance outlooks being dragged down by memory shortages. Tesla's market value decreased by about $7 billion due to negative cash flow and anticipated increased expenditures. Jason Greenberg, co-head of Jefferies' global technology, media, and telecommunications investment banking, stated on Friday that the total AI spending by tech giants is "tending" towards nearly $800 billion over the next 12 months. Greenberg noted that investors are no longer questioning whether people are adopting AI or whether there is real demand for chips and computing power. "The question is whether, in the long term, demand can generate enough profits to justify all these investments," Greenberg said. "I think that's the real issue we're grappling with right now." New details from the OpenAI Hugging Face hacking incident reveal the depth of agent methods: "It's very easy now." Apple's earnings, revenue, and iPhone sales all exceeded market expectations; however, the company provided a weak guidance for the current quarter, citing "supply constraints." According to LSEG data, Apple indicated that the revenue growth rate for the current quarter would be between 9% and 11%, lower than the 12% growth expected by analysts. Apple's stock price closed down over 7% on Friday. The company is facing a severe shortage of critical components for its devices—memory—and competition for chip manufacturing capacity. This has led Apple to raise prices for Mac and iPad, and analysts expect iPhone prices to increase this year as well. Meanwhile, Amazon reported that its cloud computing business saw a 37% year-over-year revenue growth in the second quarter, marking the strongest expansion since 2021. Its Amazon Web Services business is closely watched by the market, as this is the segment where the company accounts for most of its AI-related sales revenue. Investors use this as a gauge for the demand for Amazon's AI products. Amazon's stock price closed up over 15% on Friday, as the company expects its capital expenditures to reach $220 billion this year, up from a previous forecast of $200 billion, continuing to invest in AI infrastructure As concerns grow that large tech companies are investing ahead of demand, investors have been scrutinizing their AI spending. However, Amazon's own cloud business growth seems to validate its capital expenditures. Tracy Woo, Chief Analyst at Forrester, stated in a report on Thursday that the strong growth of AWS "clearly indicates that its infrastructure investments are meeting market demand rather than exceeding it." Amazon's stock has lagged since 2026, rising about 4% year-to-date. In the same period, Apple has risen 23%. Apple is seen as a hedge against those tech stocks that are making large expenditures, as it has not engaged in significant capital expenditure expansion. During this earnings season, investors appear to be picking AI winners, leading to a divergence in the stock performance of tech giants. 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