Did Microsoft and Amazon earnings reinforce AI as the next growth engine?

For nearly two years, the biggest question hanging over the artificial intelligence (AI) boom has been whether Big Tech’s massive spending spree would eventually translate into stronger earnings or simply become an expensive race for market share. Microsoft’s and Amazon’s latest quarterly results suggest investors may finally be getting their answer.

Both technology giants delivered stronger-than-expected cloud growth while making one message abundantly clear: AI demand is no longer the problem—capacity is.