Reasoning
Given the current trends in AI investment and the significant infrastructure costs associated with scaling AI services, hyperscalers like Amazon, Microsoft, and Google may soon face pressure on their gross margins. Recent earnings calls indicate an increased focus on AI, with companies like Microsoft attributing variances in growth to the costs of AI resources; for instance, Microsoft's Q2 2023 earnings reportedly mentioned rising expenses related to AI hardware and software development.Key uncertainty
A potential slowdown in macroeconomic conditions or changes in AI demand could mitigate margin pressures, leading hyperscalers to not cite AI-specific impacts in their 2026 outlook.