Big Tech Earnings and the AI Cycle: From Hype to Heavy Investment

Recent earnings from big tech companies like Meta, Microsoft, Tesla, and IBM highlight a shift in the AI cycle from hype to costly execution. While Meta and Microsoft show strong growth driven by AI, they face rising investments and profitability challenges. Tesla is focusing on long-term AI goals, while IBM is already reaping the benefits of AI with strong revenue growth. As AI demand expands beyond corporate cycles into national infrastructure, companies are increasingly judged on how effectively they execute and monetize AI, making the distinction between ambition and profitability clearer.

Read how AI is reshaping the tech sector and what it means for investors in the coming years.