Tech giants' earnings reports highlight the AI narrative. Last night, Microsoft, Meta, and Google released their earnings reports. Comparing them, here's the takeaway: 1. Meta's profits took a big hit due to tax rule adjustments; Microsoft's Azure and enterprise cloud revenue growth fell short of buyers' optimistic expectations, but the overall guidance was very positive; Google, on the other hand, exceeded expectations across the board, with revenue surpassing $100 billion in a single quarter for the first time. All three companies are accelerating their capital expenditures (Capex), with total investments projected to exceed $200 billion by 2025, and their future guidance is higher than market expectations. 2. Highlights from the earnings calls: 1) Microsoft revealed during its call that commercial remaining performance obligations (RPO) surged over 50%, reaching nearly $400 billion, with a weighted average fulfillment period of just two years—indicating a large number of contracts will convert into revenue in the short term. Demand for Azure services "far exceeds current capacity," and spending is expected to increase further this quarter. The company plans to double the total footprint of its data centers within the next two years. 2) Google's call emphasized that AI is now delivering tangible business results across the company. "Google adopts a full-stack AI approach, forming a complete layout from infrastructure and model research to product applications." The number of tokens processed monthly skyrocketed from 980 trillion in July to over 1,300 trillion, growing more than 20x in a year. The Gemini app's monthly active users surpassed 650 million, with query volume tripling compared to Q2. The company significantly raised its 2025 Capex forecast to $91–93 billion, ramping up investments in AI infrastructure, with a notable increase planned for 2026. Borrowing @TJ_Research01's words from https://(x.com)/TJ_Research01/status/1983719189362712651: "After hearing Meta's earnings report, you might have some concerns about AI. After hearing Microsoft's report, damn, where's the bubble? And after looking at Google's report, all you can say is the elephant is taking off.