Strategists from firms like Truist note signs that significant AI spending by major tech companies is translating into earnings. JPMorgan analysts cited strong cloud demand and earnings revisions as reasons for their S&P 500 target increase. Microsoft's Azure business achieved $100 billion in annual sales, while Amazon's AWS growth accelerated to 36.7%, its fastest in 18 quarters. Cloud computing backlogs for the top four providers now exceed $2.3 trillion, up 16% from Q1, indicating robust demand.