In Q2 2025, the world’s biggest tech giants — Amazon, Microsoft, Meta, and Apple — reported robust earnings, signaling that their bold AI investments are starting to pay off. Amazon's profits surged by 35%, backed by strong net sales of $167.7 billion, though AWS cloud margins narrowed to 32.9%. The company plans to spend up to $100 billion this year on AI infrastructure, including major new data centers and AI partnerships.

Microsoft posted an 18% revenue jump, driven by a 26% surge in Azure. Its market capitalization has now crossed $4 trillion, and the company aims to invest $120 billion in AI infrastructure in FY25.

Meta outpaced expectations with a 22% rise in revenue and a 36% jump in net income, powered by AI-optimized ad performance. It plans to increase AI-related capital spending from $72 billion to $105 billion in the coming year.

Apple, though investing more cautiously in AI, still delivered solid profit numbers thanks to stable iPhone sales and efficient operations.

While Wall Street rallied on the back of these AI-led earnings, analysts caution that large-scale AI infrastructure spending does not guarantee immediate returns. With over $400 billion expected to be spent on AI and cloud this year alone, sustainability will depend on how well these firms monetize their AI ecosystems in the long term.