AI Boom Boosts Hyperscalers, Despite Consumer Anxiety

Big tech earnings took a hit this week, but cloud divisions shone brightly. Microsoft Azure and Amazon Web Services saw significant growth, with Microsofts AI recurring revenue doubling and Amazons growth hitting a four-year high. Alphabets cloud also surged, with a backlog nearly doubling in one quarter. Rising costs and consumer sentiment concerns are driving enterprises towards public clouds, creating a massive backlog and future revenue opportunities. Despite AI-related layoffs and inflation, demand for AI compute remains high, with Nvidias CUDA software creating a strong moat. AIs shift towards agent-native workflows is driving trillion-dollar valuations, making long-term players like hyperscalers and infrastructure builders attractive, despite short-term sentiment. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/ee63eed148acfec9