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, after Microsoft and Google's dull reports jolted financier faith in Big Tech's billion-dollar investments in AI.

Shares of significant tech companies surged in the previous two years on the belief that huge datacenter requires for artificial-intelligence technologies would power investment for many years.

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

Still, Amazon may be much better located than rivals to profit from cheaper AI, analysts state, due to its enormous cloud service and lower direct exposure to expensive large-language models that power apps like ChatGPT.

Amazon Web Services, the world's largest cloud companies, wolvesbaneuo.com is anticipated to publish its strongest income increase in 8 quarters at 19.3%, according to information compiled by LSEG.

But Microsoft and setiathome.berkeley.edu Meta were both required to safeguard their AI costs plans recently, and shares of Google-parent Alphabet dropped 8% on Wednesday after it said it would be investing more on capex than analysts anticipated.

"Microsoft and Google outcomes have actually put a lot more of a microscopic lense on Amazon's cloud growth," said Dave Wagner, portfolio supervisor at Aptus Capital Advisors, forum.altaycoins.com which holds shares in all three innovation business.

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

The business was the very first big cloud company to accept DeepSeek's AI models last month and has said its capital costs, mainly on AI, would be more than the $75 billion it approximated for 2024.

Slowing growth at Microsoft Azure and Google Cloud, the 2nd- and third-biggest cloud gamers, has triggered some caution from experts about AWS' performance.

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

Some experts see the weak point at rivals as a sign that Amazon might have caught up in the AI race through efforts including doubling its investment in Anthropic and using a wide selection of AI models on its cloud platform.

"We really think that AWS is regaining share. It had actually been growing a lot slower than Microsoft Azure and Google Cloud for an amount of time, but our company believe that as Amazon has actually captured up on its AI offering, it may 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 almost 39. Microsoft's forward P/E is 29 and Alphabet's 22.4, according to LSEG data.

RETAIL STRENGTH

The e-commerce giant's results are also likely to gain from a healthy holiday shopping season, after competing retailers such as Target and a variety of garments companies issued rosy forecasts over the past month.

Amazon's North American sales for higgledy-piggledy.xyz the fourth quarter are projected to increase 9% year-on-year. After a slowdown in online sales growth earlier this year, experts say Amazon is primed for a rebound in the retail service, which has actually influenced its post-earnings share movements over the past 2 quarters.

Data from Adobe Analytics showed U.S. consumers splurged online in between November and December 2024, spending more than $240 billion, drawn by deep discount rates on everything from TVs to toys.

The vacation costs development rate of 8.7% practically doubled from the 4.9% recorded in 2023, the information revealed.

Amazon has likewise attempted to improve shipment times and expanded product merchandise, including its focus on grocery, drug store and fashion - moves analysts state will help move growth.

"Most indicators are that it was an excellent quarter. There was an excellent holiday for the consumer therefore there's plenty of reason to think Amazon will have done well in that side of the business," Luria said.

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