Top hyperscaler companies reported earnings in the final week of April, and received a mixed reaction from investors. The day after reporting, Google's parent company, Alphabet (NASDAQ: GOOGL), was the clear winner, rising by a whopping 10%. Amazon.com (NASDAQ: AMZN) took second place, but still rose by less than 1%. Meanwhile, Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) saw significant sell-offs, falling by 4% and 8.5%, respectively.
With the exception of Amazon, there was a clear trend among these names: increased artificial intelligence (AI) capital expenditure forecasts. For semiconductor giant Broadcom (NASDAQ: AVGO), the results of Google and Meta are key to its outlook. These companies partner with Broadcom to develop and deploy custom AI chips. Luckily for Broadcom, Google and Meta’s results and outlook point to good things ahead.
