Amazon, Microsoft and Alphabet boost AI spending

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Amazon, Microsoft and Alphabet have announced aggressive AI spending plans, and Amazon also boosted its forecast for full-year capital expenditures. Those moves provide fresh evidence that demand for chips and related equipment will remain strong, offering relief to a semiconductor sector that had been battered in recent days. The immediate consequence is improved demand visibility for chip makers and equipment suppliers, which may ease recent market weakness and support order activity, while signaling continued large-scale corporate investment in AI hardware and infrastructure.

Major cloud firms are increasing AI-related capital spending.