Quick Read
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Meta Platforms (META) raised 2026 capex guidance to $125-$145 billion (+$10B at both ends) and fell 9%, while Microsoft (MSFT) flagged $190 billion in 2026 spending and Amazon (AMZN) confirmed nearly $200 billion unchanged; combined hyperscaler capex for 2026 jumped from $670B to $725B. Alphabet (GOOGL) posted EPS of $5.11 versus $2.63 expected on 63% Cloud growth and rallied 6%.
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Investors are repricing risk as massive AI infrastructure spending commitments coincide with sticky inflation, Fed dissent, and a rotation from mega-cap tech into cyclicals and small caps.
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The CBOE Volatility Index (^VIX) is in a whipsaw trajectory, trading between 17.32 and 18.73 in today’s session alone, a range of 8.2% in this uncertain market climate. The move lands amid a dense macro week: blowout earnings from four mega-caps, a $725 billion AI capex revelation, Q1 GDP of 2.0%, and a Fed rate hold with the deepest dissent in decades. The fear gauge signals good news, but the market reaction is mixed. Today’s CBOE Volatility Index (^VIX) activity is a wrestling match between fear and greed as investors process a bevy of economic data and tech fundamentals.
Investors and traders aren’t entirely comfortable with the AI spending tab. The four major hyperscalers, Microsoft, Amazon, Meta, and Alphabet, collectively pushed estimated 2026 AI capital expenditure from roughly $670 billion heading into earnings week to approximately $725 billion after earnings, and Apple hasn’t even reported yet. Meta absorbed the harshest market reaction, sliding around 9% after raising its full-year capex forecast by $10 billion at both ends to a range of $125 to $145 billion. Microsoft signaled $190 billion in calendar year 2026 spending, while Alphabet guided to a similar $180 to $190 billion range and flagged that 2027 outlays would climb further still. Amazon, which had already telegraphed nearly $200 billion in capex back in January, told investors its plan remains largely unchanged.
Earnings and capex shock
Alphabet (NASDAQ:GOOGL) posted EPS of $5.11 versus $2.63 expected on Cloud growth of 63%. Amazon (NASDAQ:AMZN) delivered AWS growth of 28%, the fastest in 15 quarters. Microsoft (NASDAQ:MSFT) saw Azure grow 40%. Meta Platforms (NASDAQ:META) grew revenue 33%.
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Combined capex from the hyperscalers (the largest cloud operators) for 2026 jumped from roughly $670 billion to $725 billion, with Meta lifting its range to $125 to $145 billion and Microsoft to roughly $190 billion. Meta is off 10%, Microsoft 5%, and Amazon about 1%. Only Alphabet rallied, up about 6%.
