Investors are once again piling into AI stocks despite the ongoing conflict in Iran.

But it’s not across the board. Not all AI stocks are benefiting.

This week, 5 major earnings results of AI hyperscalers are out in the U.S.

And we are taking a deep look into them and what kind of opportunities are there.

Cheers,
InvestKaki Team 🤜🤛

Moving on, here are the news that shocked the world…

Spotify $SPOT ( ▼ 1.13% ): 1Q results were a slight beat. Revenue is up by 8%, driven by higher premium subscribers but analysts expected more. [Read More]

Coca-Cola $KO ( ▼ 0.23% ): Coca-Cola’s earnings exceeded expectations, up by 17%, driven by its sports, coffee, tea, and water segments. It has increased its earnings growth guidance for the year to 8% to 9%. [Read More]

Sun Pharma $SUNPHARMA.NSE ( ▲ 2.09% ): Sun Pharma, an Indian pharmaceutical company, is buying U.S.-based Organon for US$11.8 billion to expand its Innovative Medicine segment [Read More]

Starbucks $SBUX ( ▲ 0.54% ): Starbucks is raising its growth guidance for the year. 1Q results was a big turning point. Revenue and profits are both up by 9% and 33% respectively. [Read More]

NXP $NXPI ( ▲ 0.56% ): NXP Semiconductors results beat as investors are excited over its demand for its data centre chips. [Read More]

Here are the news covering the Asia market…

BYD $BYDDF ( ▲ 0.19% ): BYD isn’t doing too good. Profits were down by 55% as the price war in China intensifies despite the boom in EV demand. It now wants to focus more on overseas sales as it fetches higher margins [Read More]

DBS: DBS recorded a 24% q-o-q increase in its profits for 1Q 2026 , driven by higher non-interest income such as trading and wealth management segments [Read More]

Mapletree Industrial Trust: The REIT recorded lower revenue and profits due to absence of contribution from three divested properties in Singapore [Read More]

CapitaLand Investment: 1Q 2026 revenue was up by 10%, driven by its private and listed fund management segments. But it has warned uncertain market conditions could lead to less capital raising activities [Read More]

ST Engineering: ST Engineering has secured SG$4.8 billion in new contracts from the defense and public security space with two major contracts in Kuwait and Qatar [Read More]

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Amazon is an e-commerce giant in the global market, that also provides cloud services through its Amazon Web Services (AWS) to businesses and consumers.

Why we like this: Amazon just had one of its strongest quarters in 1Q 2026. Revenue is up by 17%, while profits have risen by a whopping 77%. Most of this growth was driven by its AWS segment (+28%).

However, what made headlines was its AI chip business. While still small relatively to its other core business segments, it has exceeded US$20 billion in revenue run rate for a whole year. Its AI chips of Graviton, Trainium, and Nitro are growing by triple digits.

It has also secured commitments from the two AI giants - OpenAI and Anthropic - to buy computing power and chips from Amazon. The company has guided for US$16 billion to US$19 billion in revenue for 2Q 2026 - a projected growth rate of 16% to 19%.

Alphabet is an internet conglomerate with multiple business streams. It operates the biggest search engine (Google) and video platform (YouTube), and monetises through advertising. It also operates other business streams such as Android, Chrome, Google Cloud, Google Maps, and most recently its very own chip business.

Why we like this: It was last year in November, when Alphabet got a big boost from investors. It released its newest Gemini that was powered by its own Tensor Processing Units (TPU), which is an alternative to Nvidia’s AI chips.

Its 1Q 2026 results show the continued progress on this front. Its Google Cloud business revenue increased by 63%, with operating income tripling. Margins for this business have doubled from 17.8% in 1Q 2025 to 32.9% in 1Q 2026. Gemini Enterprise is also up by 40% qoq.

Overall revenue has grown by 22%, with operating income also up by 30%. Google Services still carries the bulk of the work for Alphabet, contributing about 80% to its overall revenue. But its AI integration has resulted in higher revenue growth and profit margins.

Apple makes and sells smartphones, tablets, laptops, PCs (or Macs), and accessories, while also providing other internet services such as music and streaming.

Why we like this: The rebound is certainly looking stronger for Apple. After failing to capitalise on the AI boom in 2024 and 2025, it has now look to its partnership with Google to find a new way forward with AI.

However, Apple remains a electronic product company at its core. And 1Q 2026 results are showing that it has recovered especially from the China front. With the launch of its new iPhone 17e, Greater China sales have grown by 28%. China has been a red flag for many investors in the past few years, as many fear that it’s losing its market share there to other cheaper competitors like Huawei and Oppo.

Tim Cook is also stepping down as CEO and making way for John Ternus, a 25-year veteran at the company. It is still uncertain how this transition will work out for Apple, but it could signal that John might want to shake things up to drive growth in newer areas of the company.

Analysts are projecting that the company has another +10% upside to go.

Microsoft sells software and devices to regular people and businesses for many basic functions on PC, laptop and electronic devices.

Why we like this: Microsoft has been through a rough patch recently. Investors are now worried again on how much it is spending on its AI capital expenditures. They are worried that these investments are not generating the required returns for the company.

Furthermore, news on OpenAI missing its revenue and user targets is also affecting the company. Microsoft has a significant investment and partnership with OpenAI. That is why the company’s share price has been off its peak from last year.

However, because of the selldown, valuations for Microsoft has turned attractive. It is trading at a low price-to-book ratio of 7.3 times compared to its peers’ average of 18 times and historical average of 12.2 times (2021 to 2025).

Hence, this presents a good risk-to-reward ratio for Microsoft now. Its price-to-earnings growth (PEG) ratio has declined to 1.6 currently from 2.0 at the end of 2025.

Meta sells advertising slots to businesses and companies on its social media platforms such as Facebook, Instagram, and WhatsApp. It has also an AI division that has both software and hardware that is not profitable yet.

Why we like this: Despite an investment from Berkshire Hathaway, Meta’s share price performance for the year hasn’t been great. It’s down 7.6% year to date. Its 1Q 2026 results show that although revenue was up by 33%, it has been experiencing declining users due to the Iran conflict and the restriction on WhatsApp in Russia.

Investors were also quick on selling the company after it spent less-than-expected on its AI division in 1Q 2026 despite Meta raising its projected spending for 2026.

However, valuations have turned attractive. Price-to-earnings ratio is at 22 times compared to peers’ average of 22 times. And its PEG ratio is also relatively low at 1.6 times, similar to Microsoft.

Analysts are now projecting that Meta has an upside of about +37%.

And that’s a wrap!

Cheers,
James Yeo~