Investors are closely watching the earnings reports of Microsoft Corp. and Meta Platforms Inc. due on Wednesday.

The scrutiny focuses on their substantial investments in AI technologies.

Microsoft’s capital expenditure has reportedly increased by over 45% from last year, reaching about US$14.6 billion.

Similarly, Meta’s expenditure is projected to have risen nearly 70% to US$11 billion.

The cautious sentiment among investors is due to high costs related to AI, lofty valuations, and slower earnings growth.