The recent earnings reports from Microsoft and Meta provide strong signals of continued leadership in the artificial intelligence (AI) arms race. Both companies exceeded market expectations, with:

Microsoft jumping 8% due to stronger-than-expected growth in its cloud business (particularly Azure) and record-level capital expenditure on AI infrastructure.

Meta surging 11%, driven by robust advertising revenue and a bullish outlook, indicating that it can sustain elevated AI-related investment.

Should You Hold Microsoft and Meta?

From a professional investment standpoint, holding both Microsoft and Meta appears justifiable if your portfolio strategy aligns with:

1. Long-term conviction in AI as a structural growth driver.

2. Confidence in large-cap tech's ability to monetise AI through cloud, productivity tools, digital advertising, or consumer platforms.

3. Risk tolerance for potential volatility, especially if valuations become stretched due to momentum buying.

Their continued AI investment signals strong competitive positioning and ambition, which often correlates with long-term shareholder value creation—particularly for firms with large balance sheets and multiple monetisation verticals.

Is Their AI Spending Good News for NVIDIA?

Yes, this is unequivocally bullish for NVIDIA.

NVIDIA is the leading supplier of GPUs used in AI model training and inference across data centres.

When firms like Microsoft and Meta ramp up capex in AI, a significant portion is funnelled into NVIDIA’s ecosystem via purchases of H100s, networking components (via Mellanox), and CUDA-based infrastructure.

Meta’s and Microsoft’s AI buildouts help validate continued demand visibility for NVIDIA’s data centre segment, which accounted for over 60% of its revenue in recent quarters.

Conclusion

Holding Microsoft and Meta is a strong strategy for exposure to the AI megatrend.

Their AI spending benefits NVIDIA by reinforcing its central role as the infrastructure backbone of this transformation.

If you already hold NVIDIA, this reinforces the bull case. If not, these developments could warrant a closer look at potential entry points, especially after pullbacks.