Mag 7 Earnings Confirm $650B AI Spend Surge; Nvidia Earnings Looms May 20

Microsoft, Alphabet, Meta, and Amazon's Q1 earnings validated massive AI infrastructure investments, keeping a projected $650 billion 2026 spend on track amid beats and huge capex prints like Alphabet's $35.67B and Amazon's $59.3B equipment surge. This follows JPMorgan's upgraded forecast of +63% data-center capex growth in 2026 ($200B+ additional) and 40% in 2027, fueled by TSMC's 35% revenue jump. Mixed after-hours reactions pressured some stocks and bitcoin, but signal sustained AI demand benefiting chipmakers, with Nvidia's May 20 report as the pivotal test.