Mag 4 Capex & Cloud Recap: $725B CapEx, Who’s Going to Secure the Bag?
Markets rally prompted by good earnings. Big Tech took turns proving the bull case, recovering March's tariff-driven selloff.
How's everything going so far?
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$Alphabet(GOOG)$ surged +10% in a single session after Cloud revenue grew +63.4%, killing the "Google is losing the AI race" narrative.
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$Apple(AAPL)$ +2.56% post-earnings on a record March quarter.
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$Amazon.com(AMZN)$ posted $23.9B in operating income, a 14% beat.
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$Meta Platforms, Inc.(META)$ delivered +28.7% ad revenue growth but lost 9% due to capex concerns.
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$Microsoft(MSFT)$ 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?
Leave your comments to join our Mag7 series to win at least 5 tiger coins~
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Management's exact words: "If we had more compute, cloud revenue would have been higher."