In the latest earnings reports for the March quarter of 2026, major tech companies including Amazon, Meta, Microsoft, and Alphabet showcased robust revenue growth, exceeding Wall Street expectations. Amazon's net sales reached $181.5 billion, up 17% year-on-year, while Microsoft reported revenues of $82.89 billion, an 18% increase. Alphabet's revenue surged 22% to $109.9 billion, bolstered by strong cloud growth. However, the focus shifted to their projected capital expenditure on artificial intelligence (AI), which is anticipated to hit $674 billion in 2026, more than double the amount from 2024. This significant investment has raised concerns among investors, leading to a decline in Meta's shares by 6% in after-hours trading. Concurrently, these companies are also announcing substantial layoffs, with Meta planning to cut 8,000 jobs, Microsoft initiating a voluntary retirement program, and Amazon facing its largest layoffs to date, risking 30,000 jobs. As of now, over 90,000 tech workers have been laid off in 2026, indicating a trend of cost-cutting measures alongside increased spending on AI infrastructure.