April 24 - Artificial intelligence spending remains firm despite macro headwinds, setting up major cloud players like Amazon (AMZN, Financial), Microsoft (MSFT, Financial), and Google (GOOG, Financial) to benefit in the near term, according to Wedbush analysts.
In a note to clients on Thursday, the brokerage said it had engaged with dozens of CIOs and enterprise leaders over the past two weeks. The feedback shows continued strength in capital expenditures tied to AI projects, even amid tariff concerns and broader economic volatility.
“The AI revolution has entered its enterprise-use phase, and spending intentions for 2025 remain strong,” analysts said, citing an ongoing acceleration in large-scale deployments.
However, Wedbush flagged some uncertainty around short-term cloud deal closures. Several projects are being delayed into later quarters as CIOs wait for clarity around trade policy impacts.
The firm expects investors to treat this quarter as a “mulligan” for the sector, with eyes shifting to guidance for the second half of the year.
Alphabet (GOOGL) is set to report Q1 earnings later Today. Microsoft and Amazon will follow on April 30 and May 1, respectively.
Other potential beneficiaries of AI tailwinds include Palantir (PLTR, Financial), Pegasystems (PEGA, Financial), and IBM (IBM, Financial), based on recent enterprise checks.
