Despite Mag 7 names such as Google-parent Alphabet and software titan Microsoft dropping after earnings reports, the broader picture is positive. While sky-high spending on artificial intelligence is causing concern for some cloud-computing companies,

Amazon.com Inc. shares have largely climbed on the back of two trends: strength in its cloud business and a focus on costs. Now both could be in question.

A clear trend has emerged in the past few weeks, as one tech giant after another reported their earnings: Big Tech is spending big on artificial intelligence in 2025. Combined, Meta, Microsoft, Amazon and Alphabet,