Big Tech’s earnings season showcased one clear theme: the AI boom is no longer a promise, it’s paying off. Across Silicon Valley’s giants, artificial intelligence drove record cloud spending, surging data center investments, and stronger-than-expected results. Microsoft, Alphabet, Amazon, Meta, Apple, and even Netflix leaned into AI as both a growth engine and an escalating cost center. Cloud units are thriving, ad sales are rebounding, and new AI products, from chatbots to smart glasses, are capturing investor and consumer attention alike. But the quarter also underscored rising expenses, tax quirks, and the staggering infrastructure costs of keeping up with the AI race. Whether it’s Amazon’s $125 billion capex forecast, Meta’s soaring data center bill, or Alphabet’s cloud backlog, each company is sprinting to secure its AI future. The result is a tech sector in overdrive, profitable, experimental, and spending at record pace to stay ahead of the next wave of innovation.
TECH Portfolio Holdings
Microsoft Corporation (MSFT)
Portfolio weight in TECH*: 16.31%
Microsoft’s fiscal first quarter was another strong showing, with revenue climbing 18% to $77.67 billion and earnings of $3.72 per share topping estimates. Azure led the charge once again, with cloud revenue up 40%, pushing the broader Intelligent Cloud unit to $30.9 billion—well ahead of forecasts. Despite the beat, shares slipped 4% after CFO Amy Hood warned that capital spending will accelerate this year as Microsoft races to expand AI infrastructure. Capex hit $34.9 billion last quarter and is set to climb further into 2026. The company’s AI push also came with a $3.1 billion hit tied to its OpenAI investment, but that partnership continues to pay dividends, fueling Azure’s rapid growth. Productivity and Business Processes revenue reached $33 billion, while Personal Computing rose 4% to $13.8 billion. With demand for AI services booming, Microsoft is betting heavily that today’s spending spree will power tomorrow’s cloud dominance.1
Apple Inc (AAPL)
Portfolio weight in TECH*: 17.36%
Apple wrapped up its fiscal year with a strong finish, beating expectations and delivering upbeat guidance that sent shares higher in extended trading. The tech giant posted revenue of $102.47 billion and earnings of $1.85 per share, topping forecasts. Services were the standout, surging 15% to $28.75 billion, while Mac sales climbed 13% on the back of the refreshed MacBook Air. iPhone revenue rose 6% to $49.03 billion, though supply constraints limited early iPhone 17 sales. CEO Tim Cook struck a bullish tone, forecasting 10–12% revenue growth for the December quarter—potentially Apple’s best ever—fueled by “off-the-charts” iPhone demand and strong global store traffic. Apple expects $137.97 billion in holiday-quarter revenue, ahead of analyst estimates. Margins hit 47.2%, aided by booming Services, even as tariffs added $1.1 billion in costs. With new AI integrations like ChatGPT and Siri upgrades ahead, Apple appears poised to make 2025 another record-setting year.2
Alphabet Inc (GOOGL)
Portfolio weight in TECH*: 17.98%
Alphabet’s third quarter was a clear win across the board, sending shares up 5% in after-hours trading. Revenue surged to $102.35 billion, beating forecasts, while adjusted earnings of $3.10 per share crushed expectations. YouTube ads climbed to $10.26 billion and Google Cloud revenue hit $15.15 billion, both above estimates, as enterprise demand for AI infrastructure fueled growth. CEO Sundar Pichai highlighted a record $155 billion backlog in Google Cloud, driven by appetite for AI chips and Gemini 2.5 services. With that surge in demand, Alphabet boosted its 2025 capital spending outlook to as high as $93 billion and hinted at an even steeper ramp-up next year. The company continues to pour resources into data centers and technical infrastructure to keep pace with AI momentum. Overall, Alphabet’s results underscored a powerful combination of AI-driven expansion, steady ad strength, and a willingness to spend big to stay at the front of the tech arms race.3
Amazon.com Inc (AMZN)
Portfolio weight in TECH*: 18.57%
Amazon roared past expectations in the third quarter, sending shares soaring 13% after-hours as profits and cloud growth outshined forecasts. Earnings came in at $1.95 per share on $180.17 billion in revenue, both handily beating estimates. The standout was Amazon Web Services, which surged 20.2% to $33 billion, its fastest growth since 2022, fueled by booming AI demand. CEO Andy Jassy said AWS is expanding capacity aggressively, adding 3.8 gigawatts in the past year, and recently opened its $11 billion AI-focused Project Rainier data center. Amazon also raised its 2025 capex forecast to $125 billion and expects that figure to climb further in 2026. Beyond cloud, ad revenue hit $17.7 billion, and retail sales rose 10% thanks to a strong Prime Day. Despite layoffs of 14,000 corporate staff to streamline operations, Amazon’s AI bets like Bedrock, Rufus, and chatbot Q are driving optimism that the company’s next growth chapter is only beginning.4
Meta Platforms (META)
Portfolio weight in TECH*: 14.68%
Meta delivered another blockbuster quarter, posting revenue of $51.24 billion, up 26% year-over-year and topping expectations, but shares fell 9% after a hefty $15.93 billion one-time tax charge tied to Trump’s new “One Big Beautiful Bill Act.” The tax hit is non-cash and will actually cut Meta’s future tax payments, but it still rattled investors. Advertising sales surged to $50.08 billion, and daily active users hit 3.54 billion across Meta’s family of apps. CEO Mark Zuckerberg doubled down on AI spending, lifting 2025 capital expenditure guidance to as high as $72 billion to fund massive data center expansion and boost AI capabilities. Reality Labs remained a drag, losing $4.4 billion, though Meta’s new $799 Ray-Ban Display glasses sold out immediately. Despite rising costs, Meta forecasted Q4 revenue of up to $59 billion (above estimates) showing its ad machine is humming even as it spends aggressively on the next wave of AI hardware and infrastructure.5
Netflix Inc (NFLX)
Portfolio weight in TECH*: 15.09%
Netflix shares tumbled 9% after the streamer missed earnings expectations, largely due to a surprise tax charge in Brazil. The company took a hit from a 10% levy on cross-border payments, a one-time expense that CFO Spence Neumann said wasn’t specific to Netflix or streaming and shouldn’t affect future results. Excluding the charge, Netflix would have exceeded its forecasts. Revenue came in at $11.51 billion, up 17% year-over-year, driven by subscriber growth, price hikes, and booming ad sales. Despite trimming its 2025 operating margin forecast to 29% from 30%, Netflix said it had its best-ever quarter for advertising revenue and expects full-year sales to climb 16%. The company is leaning on both subscription and ad growth heading into a blockbuster Q4 lineup featuring Stranger Things’ final season and Rian Johnson’s Knives Out sequel. Meanwhile, its animated hit KPop Demon Hunters continues to dominate—now spawning a global toy partnership with Hasbro and Mattel.6
Sources:
- https://www.cnbc.com/2025/10/29/microsoft-msft-q1-2026-earnings-report.html (October 29, 2025)
- https://www.cnbc.com/2025/10/30/apple-aapl-earnings-report-q4-2025.html (October 30, 2025)
- https://www.cnbc.com/2025/10/29/alphabet-google-q3-earnings.html (October 29, 2025)
- https://www.cnbc.com/2025/10/30/amazon-amzn-q3-earnings-report-2025.html (October 30, 2025)
- https://www.cnbc.com/2025/10/29/meta-q3-earnings-report-2025.html (October 29, 2025)
- https://www.cnbc.com/2025/10/21/netflix-nflx-earnings-q3-2025.html (October 22, 2025)
*Portfolio weights as at October 31, 2025.
Source: Getty Images Credit: MicroStockHub
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Published November 20, 2025.
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