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By Deborah Mary Sophia

Feb 5 (Reuters) - The pressure is on Amazon.com to provide on lofty expectations for cloud computing in its fourth-quarter results on Thursday, forum.altaycoins.com after Microsoft and Google's dull reports jolted financier faith in Big Tech's billion-dollar investments in AI.

Shares of major tech companies surged in the previous 2 years on the belief that huge datacenter requires for artificial-intelligence technologies would power financial investment for several years.

But that was before Chinese start-up DeepSeek said it had attained AI advancements at a portion of the expense, precipitating a selloff in innovation stocks that some state was past due.

Still, addsub.wiki Amazon might be better positioned than rivals to capitalize on cheaper AI, state, due to its enormous cloud company and lower exposure to expensive large-language models that power apps like ChatGPT.

Amazon Web Services, garagesale.es the world's largest cloud companies, is anticipated to publish its greatest income increase in eight quarters at 19.3%, according to information assembled by LSEG.

But Microsoft and Meta were both required to safeguard their AI spending plans last week, and shares of Google-parent Alphabet plunged 8% on Wednesday after it said it would be investing more on capex than analysts prepared for.

"Microsoft and Google results have put a lot more of a microscopic lense on Amazon's cloud growth," said Dave Wagner, portfolio supervisor accc.rcec.sinica.edu.tw at Aptus Capital Advisors, which holds shares in all three technology companies.

"But if Amazon can squash it on their cloud numbers, the market's going to definitely like that report."

The business was the very first huge cloud supplier to welcome DeepSeek's AI models last month and has said its capital spending, bphomesteading.com mainly on AI, would be more than the $75 billion it approximated for 2024.

Slowing growth at Microsoft Azure and setiathome.berkeley.edu Google Cloud, the second- and third-biggest cloud players, has stimulated some care from experts about AWS' performance.

"Microsoft said it was capacity constrained, Google said it was capacity constrained. More than likely, Amazon is going to say it may have been capacity constrained also which's why its development rate isn't rather approximately what the market might have expected," said Bob O'Donnell, chief analyst at TECHnalysis Research.

Some experts see the weakness at competitors as a sign that Amazon may have caught up in the AI race through efforts including doubling its investment in Anthropic and offering a broad selection of AI models on its cloud platform.

"We actually think that AWS is regaining share. It had actually been growing a lot slower than Microsoft Azure and Google Cloud for a period of time, however we believe that as Amazon has caught up on its AI offering, it might have less of a deceleration than Azure and Google Cloud," D.A. Davidson analyst Gil Luria said.

The business has maintained a higher appraisal than some of its rivals, with a present forward price-to-earnings ratio of nearly 39. Microsoft's forward P/E is 29 and Alphabet's 22.4, according to LSEG data.

RETAIL STRENGTH

The e-commerce giant's outcomes are likewise most likely to gain from a healthy holiday shopping season, after competing retailers such as Target and a variety of garments business provided rosy projections over the past month.

Amazon's North American sales for the fourth quarter are projected to rise 9% year-on-year. After a downturn in online sales development previously this year, analysts state Amazon is primed for a rebound in the retail company, which has affected its post-earnings share movements over the past two quarters.

Data from Adobe Analytics showed U.S. consumers spent lavishly online in between November and December 2024, investing more than $240 billion, drawn by deep discounts on whatever from TVs to toys.

The holiday spending growth rate of 8.7% practically doubled from the 4.9% taped in 2023, the information revealed.

Amazon has also tried to enhance shipment times and expanded item merchandise, including its focus on grocery, drug store and fashion - relocations analysts say will assist move growth.

"Most indications are that it was an excellent quarter. There was an excellent holiday for the consumer therefore there's a lot of factor to think Amazon will have done well because side of the company," Luria said.

(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)