According to UBS, as Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) are set to report their earnings, these three tech giants are expected to benefit from "stable" and "healthy" cloud spending. UBS analyst Karl Keirstead noted that discussions surrounding core cloud infrastructure spending were optimistic after speaking with 11 clients and partners at the Oracle AI World Conference. He added that spending for AI inference and training should also present upward opportunities. He stated, “We believe the upside potential for AWS is limited relative to Wall Street expectations, while Azure and Google Cloud have greater upside potential.”

Delving deeper, Karl Keirstead observed that the overall tone of the discussions was more positive than three months ago, remarking that "the improvement in the overall cloud infrastructure spending atmosphere is noteworthy." He explained, "Although several Fortune 500 companies mentioned that their IT budgets will remain flat in 2025, not a single one—zero—plans to further cut or delay spending. In fact, some partners reported seeing budget relaxations starting in the third quarter, showing signs of a 'thaw'.”

"While this survey focused on corporate clients contributing approximately 85%-90% of revenue from AWS, Azure, and Google Cloud (i.e., ‘core’ demand), demand for cloud GPUs from AI model providers and startups remains robust, with no significant slowdown observed in Q3 2025.”

Other notable conclusions from the discussions include that the growth in demand for data software driven by AI should benefit hyperscalers as well as companies like Snowflake (SNOW). Moreover, the industry generally agrees that Microsoft Azure is gaining market share; three partners reported that their Azure business accelerated in Q3 and is expected to further accelerate in Q4. In contrast, these partners described their AWS business as "slightly below expectations" in Q3 but anticipate stability in Q4. Microsoft and Google are set to announce their quarterly results after the market closes on October 29, while Amazon will report its quarterly performance after the market closes on October 30.