Mag 7 Just Committed $710 Billion To AI Capex

Apple beat at $111.2B with a $100B buyback. Meta got hit. Powell’s last press conference brought the most divided Fed since 1992.

$710 billion. That’s what Amazon (NASDAQ:AMZN) , Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL) (NASDAQ:GOOG), and Meta (NASDAQ:META) just told the market they (NYSE:MAGS) will spend on AI CapEx in 2026. Pichai said the quiet part out loud: “We are compute-constrained.”

The S&P closed Friday at a fresh record 7,230 (+0.3%), the Nasdaq at a record 25,114 (+0.9%), both posting their best month since 2020. Apple did most of the Friday lifting after a $111.2B revenue beat. The Dow slipped 153 points to 49,499. WTI cooled to $102.28 (-2.7%) on Iran de-escalation signals, but the national gas average still hit $4.39, up from $4.06 a week ago.

THE RUNDOWN

CapEx › THE $710B SHOCK › Amazon at $200B. Microsoft at $190B. Google at $185B. Meta at $135B. Every one of them raised guidance this week, and Pichai’s “we are compute constrained” line was the most consequential CEO sentence of the quarter. The signal isn’t just the size; it’s the dispersion. Stocks that turn CapEx into revenue today (AAPL, AMZN, GOOGL) ripped. Stocks where the spend is still a 2027 story (META -8.6% Wednesday, MSFT -3.9%) got punished.

JUST IN: THE AI INVESTMENT GROWS

Amazon, Microsoft, Google and Meta Platforms just updated their guidance and now plan to spend a combined

$710 BILLION on CAPEX this year

Amazon $AMZN: $200B
Microsoft $MSFT: $190B
Google $GOOGL: $185B
Meta Platforms $META: $135B pic.twitter.com/4M3AVvkjvC
— Evan (@StockMKTNewz) April 29, 2026

GOOGLE $GOOGL CEO SUNDAR PICHAI JUST SAID

"We are compute constrained … our cloud revenue would have been higher if we had more compute" pic.twitter.com/aJfcdpuLL2
— Evan (@StockMKTNewz) April 29, 2026

MICROSOFT $MSFT JUST REPORTED Q3 EARNINGS

– Revenue: $82.9B vs $81.4B est 🟢
– EPS: $4.27
– Net Income: $31.8B

Segment breakdown:
– Productivity & Business Processes: $35.0B vs $34.4B est 🟢
– Intelligent Cloud: $34.7B
– More Personal Computing: $13.2B vs $12.7B est 🟢
-… pic.twitter.com/Vb3F3qK6y3
— WOLF (@WOLF_Financial) April 29, 2026

APPLE › $111.2B AND A $100B BUYBACK › Apple delivered Q2 revenue of $111.18B vs $109.7B est and EPS of $2.01 vs $1.95. iPhone revenue at $56.99B narrowly missed $57.21B, but Cook described demand as “off the charts” with chip constraints limiting orders. Services hit a $120B annual run rate, the buyback authorization went up by $100B, and next-quarter revenue guidance of 14-17% YoY blew past the ~11% consensus. Stock closed up 3% Friday.

APPLE $AAPL JUST REPORTED Q2 EARNINGS

– Revenue: $111.18B vs $109.66B est 🟢
– EPS: $2.01 vs $1.95 est 🟢
– Gross Margin: 49.27% vs 48.38% est 🟢
– Dividend: $0.27 per share

Segment breakdown:
– iPhone Revenue: $56.99B vs $57.21B est 🔴
– Services Revenue: $30.98B vs $30.39B… pic.twitter.com/AFcfVlbdyz
— WOLF (@WOLF_Financial) April 30, 2026

"THE DEMAND WAS OFF THE CHARTS."

That's how Apple $AAPL CEO Tim Cook described iPhone demand to Reuters tonight, after the company beat on revenue, EPS, gross margins, Mac, Services, iPad, Wearables, and China.

The lone iPhone "miss" of $220M was tied to chip supply… https://t.co/UtJsXeV4eu pic.twitter.com/lDKQI16fC9
— WOLF (@WOLF_Financial) April 30, 2026

FED › MOST DIVIDED VOTE SINCE OCTOBER 1992 › The Fed held at 3.50%-3.75% as expected, but the 8-4 split was historic. Stephen Miran dissented in favor of an immediate quarter-point cut. Cleveland’s Beth Hammack dissented the other way, saying it’s no longer appropriate to signal a rate-cut bias. Powell confirmed it was his last press conference as Chair and will stay on as a Fed Governor past May 15. Kevin Warsh advanced through the Senate Banking Committee.

JUST IN: THE FED LEFT INTEREST RATES UNCHANGED AT 3.50% TO 3.75%, BUT THE VOTE WAS THE MOST DIVIDED FOMC DECISION SINCE OCTOBER 1992 🇺🇸

The vote: 8-4 in favor of holding rates.

The dissents went in opposite directions:
– Miran dissented in favor of a 0.25% rate cut
– Hammack,… pic.twitter.com/shAPgoNFUf
— WOLF (@WOLF_Financial) April 29, 2026

OIL › UAE BOLTS OPEC, PUMP DOESN’T BUDGE › The UAE said it’s leaving OPEC and OPEC+ effective May 1 and will gradually boost production. WTI fell 2.7% Friday on Iran de-escalation signals via Pakistani mediators. Gas didn’t get the memo. National average $4.39, up from $4.06 seven days ago.

JUST IN:

THE UNITED ARAB EMIRATES 🇦🇪 JUST SAID IT WILL LEAVE OPEC AND OPEC+ AS OF MAY 1ST AND WILL BEGIN BOOSTING OIL PRODUCTION GRADUALLY pic.twitter.com/K6WtWVkqLi
— Evan (@StockMKTNewz) April 28, 2026

TARIFFS › TRUMP TARGETS EU CARS NEXT WEEK › Trump posted Friday that the EU isn’t complying with the agreed trade deal and tariffs on European cars and parts go up next week. Watch BMW, Mercedes, Stellantis, and US-listed parts suppliers at Monday’s open.

🇺🇸 PRESIDENT TRUMP JUST POSTED THIS

"I am pleased to announce that, based on the fact the European Union 🇪🇺 is not complying with our fully agreed to Trade Deal, next week I will be increasing Tariffs charged to the European Union for Cars and Trucks coming into the United… pic.twitter.com/ap7Umtg5VM
— Evan (@StockMKTNewz) May 1, 2026

THE PLAY › THE $710B SORT

The headline is $710 billion. The story is what the market did with it.

CapEx guidance landed on Wednesday. The reaction was nothing close to uniform. Meta dropped 8.6% on guiding to $135B (up from $125B). Microsoft dropped 3.9% on $190B and “high memory costs.” Google rallied to all-time highs. Amazon held flat after AWS reaccelerated to 28.4% YoY, the fastest growth in 15 quarters. Apple, which barely spends on AI, ripped 3% Friday on a $111B revenue print and a $100B buyback.

That’s not a market that hates CapEx. It’s a market sorting it.

The dispersion is the signal. Compute-leveraged names (Apple Services, AWS, Google Cloud) get rewarded because CapEx is showing up in revenue today. CapEx absorbers (Meta, Microsoft) get punished because the spend keeps growing while the monetization story is still a 2027-2028 conversation. Pichai’s “compute constrained” framing is bullish. Zuckerberg’s $135B at this stage of the build isn’t.

Amazon Web Services $AMZN is now a $150+ Billion Revenue Run Rate Segment

AWS's revenue grew by 28.4% YoY last quarter its fastest growth rate in 15 quarters pic.twitter.com/UYqSJh3diD
— Evan (@StockMKTNewz) April 29, 2026

Why the Fed split matters here. Hammack vs Miran is shorthand for the stagflation question. Oil at $102, gas at $4.39, a labor market that’s softening. If the FOMC can’t agree on direction, the dispersion trade gets a second engine: a wider gap between defensive cash flow names and CapEx stories needing patient capital.

The trigger. AMD reports Tuesday after the close. JOLTS lands Tuesday morning. If AMD comes in light on AI accelerator revenue, the CapEx-absorber names get a second leg down. The tell is the SMH/IGV ratio (semis vs software). Semis are leading. Software is bleeding (IBM -7.5% last Thursday, ServiceNow -18%). Watch the gap on Wednesday’s open.

One tactical close. New Series I Savings Bonds issued May 1 through October 31 carry a 4.26% composite rate (0.90% fixed, 3.34% inflation component). Cap is $10K per person electronically. With the 10Y at 4.38% and stagflation pricing back in the bond market, government-backed inflation protection at 4.26% is worth a slot for the cash you don’t need inside 12 months.

Monday: Berkshire’s first earnings report with Greg Abel as CEO. We’ll break down what changed and what didn’t.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.