Cloud Giants Spend $31 Billion as AI Boom Slows
Amazon, Alphabet, and Microsoft grew cloud revenue by 54% while Goldman Sachs warned that the AI earnings boom has stopped accelerating.
Cloud hyperscalers Amazon.com, Alphabet Inc., and Microsoft spent $31 billion in the third quarter, contributing to a combined cloud revenue growth of 54%. This spending occurred alongside a 33% year-over-year increase in S&P 500 profits.
Despite these gains, Goldman Sachs Private Wealth Management warned that the AI earnings boom has stopped accelerating. This caution coincided with a volatile market week that saw the Nasdaq 100 briefly enter correction territory, finishing Friday down 3.5% at 28,385, while the S&P 500 fell 1.8% to 7,579.
Intel suffered the most significant impact during the downturn, experiencing its worst single-day trading performance in at least four decades.
