Amazon (AMZN) and Microsoft (MSFT) are leading global cloud computing firms pouring record capital into AI infrastructure, with each company vying for enterprise workloads transitioning to the cloud. Amazon Web Services (AWS) reported an operating income of $14.2 billion in Q1 2026, attributed to customer demand and efficiency from custom Trainium chips. Meanwhile, Microsoft Azure experienced a 40% revenue growth in Q3 fiscal 2026, with remaining performance obligations reaching $627 billion.
Amazon is projected to achieve earnings of $8.93 per share for 2026, a 24.55% increase year-over-year. In contrast, Microsoft’s 2026 earnings estimate sits at $17.33 per share, reflecting a 27.05% growth. Both companies are increasing capital expenditures, with Amazon’s reaching $43.2 billion and Microsoft’s at $31.9 billion in their respective reports. Investor confidence is currently favoring Amazon, which has seen an 8.3% year-to-date share price gain, compared to Microsoft’s 16.8% decline.
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