Big Tech’s aggressive investments in artificial intelligence (AI) are yielding significant returns, propelling a $500 billion increase in combined market value for leading tech firms in 2025.
In the April-June quarter, AI significantly boosted demand for internet search, digital advertising, and cloud computing, driving robust revenue growth for Microsoft, Meta, and Alphabet.
Microsoft reported Azure cloud sales exceeding $75 billion in its last fiscal year, with over 100 million users adopting its Copilot AI tools.
Alphabet’s Gemini AI assistant app now serves over 450 million monthly active users, while Meta’s advertising business saw better-than-expected sales, supporting its AI infrastructure investments.
Investors rewarded these results with significant stock gains.
Microsoft’s shares rose over 6%, pushing its market value past $4 trillion, a milestone previously achieved only by Nvidia.
Meta’s stock surged 12.2%, adding nearly $200 billion to its $1.75 trillion market cap.
The optimism also lifted Amazon, up 1% ahead of its earnings report, signaling strong investor confidence in AI’s growth potential despite economic uncertainties impacting other sectors.
Despite scrutiny over rising capital expenditures, projected to reach $330 billion in 2025, tech giants are doubling down on AI.
Microsoft plans to spend a record $30 billion this quarter, while Alphabet raised its annual forecast by $10 billion to $85 billion.
Meta adjusted its capital expenditure range to $66-$72 billion, with costs expected to accelerate into 2026.
These investments, underpinned by strong core businesses, are silencing doubts about AI’s viability, positioning Big Tech as a dominant force in the AI-driven economy.