Mag 4 Capex & Cloud Recap: $725B CapEx, Who’s Going to Secure the Bag?

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Markets rally prompted by good earnings. Big Tech took turns proving the bull case, recovering March's tariff-driven selloff.

How's everything going so far?

$Alphabet(GOOG)$ surged +10% in a single session after Cloud revenue grew +63.4%, killing the "Google is losing the AI race" narrative.
$Apple(AAPL)$ +2.56% post-earnings on a record March quarter.
$Amazon.com(AMZN)$ posted $23.9B in operating income, a 14% beat.
$Meta Platforms, Inc.(META)$ delivered +28.7% ad revenue growth but lost 9% due to capex concerns.
$Microsoft(MSFT)$ is worse, still the worst performer among mag 7. Its capex slows down.

Another company affected by the mag earnings is$$NVD$$ -5%, falling back below the $5T market cap.

A new high-efficiency model release that the market read as "better models = less compute demand." But $725B in committed hyperscaler CapEx is already locked, B300 servers pricing near $1M, and supply tightness hasn't changed.

Let's take a look at the most important parts: capex and cloud.

💰 CapEx Summary

Cloud Revenue Comparison: Constrained by supply — not by demand.

Google Cloud's acceleration was the biggest surprise of the night: +63.4% from +48% last quarter, Cloud op margin cracking 30% for the first time.

Management's exact words: "If we had more compute, cloud revenue would have been higher."

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Jefferies analyst Brent Thill: "We're seeing bottlenecks across the board" — memory, fiber, power, cooling water, undeveloped land.

Every layer in the AI infrastructure stack is supply-constrained and repricing. $725B of committed spend means the picks-and-shovels trade just got a hard floor under it.

$725B in committed CapEx. Who actually captures it?

How do you view the sky-high capex?

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Amazon Q1: AWS 4Y Growth High, But Capex Concerns Loom?

Amazon (AMZN) edged up just 0.77% today despite Q1 results showing AWS revenue grew 28% year-over-year — its fastest single-quarter growth rate in nearly four years — corroborating alongside Google Cloud the certainty of hyperscaler AI compute demand. Analysts noted that both companies' cloud growth trajectories provide clear near-term demand visibility for chip suppliers including Nvidia. The AWS acceleration story is now well established, but when will elevated AI capital expenditure translate into visible margin improvement?

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Comments

Cadi Poon
25 minutes ago
Cadi Poon
Google Cloud's acceleration was the biggest surprise of the night: +63.4% from +48% last quarter, Cloud op margin cracking 30% for the first time.

Management's exact words: "If we had more compute, cloud revenue would have been higher."
TimothyX
27 minutes ago
TimothyX
Markets rally prompted by good earnings. Big Tech took turns proving the bull case, recovering March's tariff-driven selloff.
pirichop66
20:49
pirichop66
Great I'm learning more everyday I'm on here Plus I'm new to this the stock market which u think is awesome I wish I had joined sooner