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Tech Giants' $700B+ AI Spending Bets Put to the Test by Investors

Guavy AI Editorial Team Published August 31, 2026

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AMZN MSFT NVDA

NVIDIA Corporation (NVDA) and other top tech companies have made significant investments in capital expenditures (CapEx), totaling over $700 billion. The recent earnings reactions across these 'Magnificent Seven' suggest that investors are evaluating CapEx alongside quarterly earnings, rather than simply rewarding or punishing high spending.

Amazon (AMZN), for example, has planned $220 billion of CapEx for 2026 and delivered clear revenue growth in its latest quarter. In contrast, Microsoft (MSFT) also increased its CapEx but saw a decline in quarterly earnings per share.

This selective approach to rewarding AI spending suggests that investors are becoming more discerning in their evaluation of companies' investments. While high spending on AI research and development is still valued, it is no longer the sole determining factor for investor sentiment.

Tech Giants' $700B+ AI Spending Bets Put to the Test by Investors

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