Big Tech’s AI Bill: Meta, MSFT Shares Slide 10/30/25
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Samsung Electronics, the South Korean tech giant, just saw its chip unit’s profit absolutely soar. This impressive surge is largely thanks to the booming demand for memory chips, especially high-bandwidth memory, or HBM, driven by the artificial intelligence revolution. Samsung, a key player competing with SK Hynix and US-based Micron Technology, announced plans to focus next year on mass producing the next generation of HBM4, specifically designed to work hand-in-hand with AI accelerators from giants like Nvidia. The company echoed sentiments from SK Hynix, predicting that the massive spending spree in AI will continue this quarter and well into next year. This positive outlook sent Samsung’s shares climbing a solid 3.6% in Seoul during regular trading. Investors should be watching how this increased demand impacts the broader memory chip market and the supply chain for AI infrastructure.
Shifting gears to the titans of Big Tech, the theme of artificial intelligence continues to dominate, but with a nuanced twist. Microsoft, the software and cloud computing giant, along with Google-parent Alphabet, both delivered better-than-expected results for their latest quarters. Microsoft’s Azure cloud business surged, growing a robust 40%, and the company’s total revenue climbed 18% to nearly 78 billion dollars, handily beating expectations by more than two billion. This marks a significant win, reinforced by its revised deal with OpenAI, giving it exclusive access to the models behind ChatGPT, a key driver for Azure’s rapid growth. Alphabet, too, saw impressive numbers, raking in just over 100 billion dollars last quarter, with its Google Cloud unit experiencing revenue growth of over a third, fueled by demand for AI-powered infrastructure. However, the story takes a turn when we look at investor reaction to future spending plans.
Now, while strong revenue numbers are certainly welcome, it appears investors are closely scrutinizing the cost of the AI race. Shares of Facebook-parent Meta, for instance, slid after the company recorded a nearly 16 billion dollar one-time charge linked to a specific US bill, which ate into its profit, even though its underlying revenue growth was a healthy 26%. More broadly, both Meta and Microsoft saw their shares fall in after-hours trading yesterday, and this was directly tied to their disclosures about spending heavily on AI data centers. Meta explicitly warned that its 2026 capital outlays would be “notably larger” than in 2025. While Meta CEO Mark Zuckerberg has voiced confidence and stated he isn’t worried about overspending on AI infrastructure, pledging hundreds of billions to achieve ‘superintelligence,’ this massive investment is clearly testing investor patience. Despite the strong demand, the sheer scale of anticipated capital expenditure is sparking concerns about profitability and return on investment in the long run. This is a critical factor for investors to monitor as these tech giants continue to pour resources into the AI frontier.

Keywords: AI accelerators, AI infrastructure, Alphabet, Azure, ChatGPT, Google Cloud, HBM4, Mark Zuckerberg, Meta, Micron Technology, Microsoft, Nvidia, OpenAI, SK Hynix, Samsung, Seoul stock exchange, after-hours trading, artificial intelligence, capital expenditure, cloud computing, data centers, investor sentiment, memory chips, profit growth, profitability, revenue growth, semiconductor, tech earnings, tech spendingThe post Big Tech’s AI Bill: Meta, MSFT Shares Slide 10/30/25 first appeared on Rapid Money Radio.

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