‘More and more money’: First wave of Big Tech earnings signal AI spending boom in 2026
Microsoft, Meta and Tesla were the first of the 'Magnificent Seven' to report December quarter earnings. The market response was varied, but the underlying trend was clear.
The first wave of earnings from America's largest technology companies for 2026 may have received differing responses from the market but they also reveal a clear and unmistakable trend: the AI arms race is alive and well, and any suggestions of a slowdown in AI spending amid lingering talk of a bubble can be put to rest, for now at least.
Microsoft, Meta Platforms and Tesla all beat market estimates for fourth-quarter revenue and earnings when they reported on Thursday morning (Australian time).
Each company also doubled down on grand AI spending plans, even if they received mixed reactions on Wall Street — Meta shares surging as high as 10% with Microsoft down 6%.
Bell Potter investment strategist Rob Crookston told Capital Brief that “you're seeing more and more money flow into AI, and that is sort of in line with our expectations”.
