Fast Money Blog- 2/6/26
The week on Wall Street was a busy one, as we got earnings releases from several major tech companies, including Advanced Micro Devices, Inc. (AMD), Alphabet, Inc. (GOOG), and Amazon.com, Inc. (AMZN).
On Tuesday, February 4th, Advanced Micro Devices, Inc. released its Q4 2025 earnings.
Top-line quarterly revenue came in at $10.27 billion, a record high, up 34% year over year. This revenue was driven by strong demand in their Data Center and Client and Gaming Segments.
Q4 Revenue broke down like this:
AMD’s Data Center segment, which includes GPU’s, AI chips and data processors brought in $5.3 billion, up 39% year-over-year.
AMD’s Client and Gaming segment, which includes chips for consumer devices such as laptops, gaming PCs and game consoles, rose 37% year-over-year to $3.9 billion for the quarter.
For fiscal year 2025, AMD had record top-line revenue of $34.6 billion, up 34% year-over-year.
This was a solid earnings release for the company, whose stock has risen more than 100% in the past year.
So why did the stock slide after earnings?
While news sources point to the company’s less than expected Q1 guidance, the real story is one we have seen play out many times: Wall Street investors taking profits off of a stock that has made them millions of dollars over the past 52 weeks.
So what about Google’s earnings, Tyrone?
Alphabet, Inc. (GOOG) reported outstanding Q4 2025 earnings on Wednesday, February 4th.
GOOG’s top line revenue of $113.8 billion, was up 18% year-over-year, marking its second straight month with revenue above the $100 billion.
For the fiscal year 2025, top-line revenue was $403 billion, up 15% year-over-year.
Here’s what’s most important to know about Google’s Q4 2025 earnings:
Overall Google Services revenues for the quarter, which includes Google Search and YouTube ads, increased 17% from last year to $95.9 billion, with Search alone bringing in $63 billion in revenue, up 17% over a year ago.
Cloud revenue climbed 48% to $17.7 billion.
In other news, the company said that in 2026 it now expects to spend somewhere in the range of $175 to $185 billion in capital expenditures to meet customer demand for Google Cloud. This is nearly double the amount spent in 2025.
Once again, between the stock’s 65% rise in the past six months and the concern about its future cap ex spending, Wall Street investors took profits.
Yesterday, February 5th, Amazon released their Q4 2025 earnings, with top-line revenue of $213.4 billion, up 14% year-over-year.
Total Fiscal Revenue for 2025 increased 12% year-over-year to $716.9 billion.
Here’s what you need to know about Amazon’s quarterly earnings:
The company’s cloud computing unit saw its Q4 revenue climb 24% year-over-year, the fastest growth in 13 quarters, to $33 billion.
Amazon’s advertising business had very impressive results, with ad revenue growing 22% year-over-year to $21.3 billion.
Amazon’s online store sales (which comes from the products that the company sells directly), grew 10% year-over-year to $82.99 billion.
The company also announced new web service agreements with OpenAI, Visa, the NBA, BlackRock, Perplexity, Lyft, United Airlines, DoorDash, Salesforce, the U.S. Air Force and Adobe, amongst others.
Again, it was mostly the company’s capex spending that had Wall Street investors concerned, as Amazon announced they expect to spend $200 billion this year, up from $131 billion in 2025. As the company explained, this investment will go to data centers and other infrastructure to meet the surge in artificial intelligence demand.
It’s important to note that Amazon is positioning itself to be an AI “landlord,” renting out space on their hosting platform.
The trend we’ve seen this week shows that even in the face of good earnings, Wall Street is still debating whether or not there will be an adequate return on all of the AI investments these big tech companies are making.
The lesson for AI companies investing in AI infrastructure is: the future looks bright!
Tyrone Jackson
The Wealthy Investor