MarketWatch First Take
Tech giants plan to spend more on infrastructure this year, and hope to reap the rewards later
Microsoft and Alphabet both plan to spend this year to build out more infrastructure to support the higher-performance computing power needed for AI.
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As Alphabet Inc. and Microsoft Corp. vied for investors’ attention Tuesday with dueling earnings reports, one commonality was that both companies are increasing their capital spending on infrastructure, with AI a key component of that spending.
Both Alphabet and Microsoft MSFT beat Wall Street’s expectations, with revenue from cloud computing better than expected, and stabilized search revenue another factor. Especially in the case of Alphabet GOOG GOOGL, the strength in search — at a time when internet advertising revenue…
