AI Investments Finally Pay Off for Wall Street Giants

Wall Street strategists are observing that massive investments in artificial intelligence (AI) by Big Tech are beginning to generate tangible returns, particularly among 'hyperscalers' with sprawling cloud businesses.

Buoyed by strong earnings outlooks and cloud demand, JPMorgan Chase has raised its S&P 500 target from 7,800 to 8,000, according to analyst Dubravko Lakos-Bujas.

The cloud business performance of tech giants such as Microsoft, Amazon, Alphabet, and Meta has been particularly striking, with Azure surpassing $100 billion in annual sales for the first time and AWS posting a 36.7% growth rate, its fastest in 18 quarters.