Hyperscalers Roar Back to Life as AI-Fueled Growth Takes Hold

Hyperscaler stocks have been stuck in neutral for some time due to concerns over capital expenditures, but recent earnings reports suggest they are finally starting to rally.

Four stocks that investors may want to consider buying now include Amazon (AMZN), Meta Platforms (META), Alphabet (GOOGL), and Microsoft (MSFT).

Amazon's cloud computing unit, AWS, saw a 37% surge in revenue in Q2, while its operating income soared 63% to $16.6 billion.

The company's e-commerce business also continues to grow, with solid revenue growth and nice operating leverage due in part to the use of AI to reduce costs and shorten delivery times.