For several years, Big Tech has operated under a simple rule: spend more on AI, or investors will assume you’re falling behind. This earnings season, that rule may have changed.
Even a year ago, if one of the cloud giants had merely held its AI spending plans steady while rivals kept increasing theirs, Wall Street probably would have panicked. Investors would have assumed AI demand was cooling or that the company had lost confidence in its competitive position.
Instead, Microsoft did exactly that this week, and its stock exploded higher — adding the most market value in one day by any US company in history.
Late Wednesday, the company kept its…
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