Q4/2025, on the surface, wasn't a bad quarter for US Big Tech.
Revenue still grew year over year
Margins didn't collapse as many had feared:
TSMC even expanded margins on AI demand
In the Mag 7, Q4 profits are projected to rise 24.2% Y/Y
(As of 02/07/2026, Mag 7 still pending NVDA's Q4/2025 ER. Figures include actuals for the other 6 companies & NVDA estimate).
Cash flow remains robust. No company signaled cuts to investment. But the market, at this point, has moved past Q4.
Focus has fully shifted to the bigger question: the AI CapEx race.
All these companies are committing to massive AI spending in 2026–2027, with aggregate investment scaling up to $600 billion.
The issue is no longer how they performed in Q4, but whether they can sustain this race for years-and whether that AI CapEx will generate real value or just inflate a bubble.
This article does not delve deeply into Apple.
That's because its AI-related CapEx is relatively modest (around $13–14 billion/year) and focuses on integrating tech from external partners rather than building its own infrastructure.
This approach shields Apple from market pullbacks driven by overinvestment fears.
In today's article, Viet Hustler dives into Big Tech's Q4 financials, assesses financial resilience, and uncovers risks behind the largest investment race in years:
Q4/2025 Earnings Update:
TSMC – AI as Primary Growth Driver
Google – AI Starts Printing Money at Scale
Microsoft – Profits Pressured by AI Infrastructure
Amazon: Piling Cash into Infrastructure
$600 Billion AI Capex: Where Is the Money Flowing?
AI Capex: Profit-Generating Investment or 'Cost of Survival'?
Assessing Companies' AI Capex Endurance
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