Amazon and Alphabet remain attractive long-term investments despite strong year-to-date gains, with accelerating cloud growth and massive capital expenditure plans.

Amazon Web Services revenue rose 28% year over year in Q1 2026 to $37.6 billion, its fastest growth in more than three years. Amazon's custom chips business (Graviton, Trainium, and Nitro) exceeded a $20 billion annual revenue run rate and is growing at a triple-digit rate.

Alphabet's Google Cloud segment grew 63% year over year in Q1 2026 to $20 billion, making it the fastest-growing major cloud platform. Google Cloud backlog nearly doubled from the prior quarter to more than $460 billion. Revenue from products built on Alphabet's gen AI models grew nearly 800% year over year.

Both companies are investing heavily: Amazon guided to about $200 billion in capital expenditures in 2026, while Alphabet raised its 2026 capital expenditure guidance to a range of $180 billion to $190 billion, with 2027 spending projected to rise significantly. Alphabet announced plans to raise more than $80 billion through an equity offering to help fund this spending.