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By Deborah Mary Sophia

Feb 5 (Reuters) - The pressure is on Amazon.com to deliver on lofty expectations for cloud computing in its fourth-quarter results on Thursday, orcz.com after Microsoft and Google's lackluster reports jolted financier faith in Big Tech's billion-dollar investments in AI.

Shares of major tech business surged in the previous two years on the belief that massive datacenter requires for artificial-intelligence technologies would power financial investment for years.

But that was before Chinese startup DeepSeek said it had actually attained AI developments at a portion of the expense, precipitating a selloff in technology stocks that some say was past due.

Still, Amazon may be much better located than rivals to capitalize on cheaper AI, experts state, due to its massive cloud business and lower exposure to costly large-language designs that power apps like ChatGPT.

Amazon Web Services, the world's largest cloud providers, is expected to publish its greatest earnings increase in 8 quarters at 19.3%, according to information compiled by LSEG.

But Microsoft and Meta were both forced to safeguard their AI budget last week, and shares of Google-parent Alphabet plunged 8% on Wednesday after it said it would be spending more on capex than analysts prepared for.

"Microsoft and Google outcomes have put a lot more of a microscope on Amazon's cloud growth," said Dave Wagner, portfolio manager at Aptus Capital Advisors, which holds shares in all three innovation business.

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

The business was the very first huge cloud provider to embrace DeepSeek's AI models last month and bytes-the-dust.com has said its capital spending, mainly on AI, would be more than the $75 billion it approximated for 2024.

Slowing development at Microsoft Azure and Google Cloud, the 2nd- and mariskamast.net third-biggest cloud gamers, oke.zone has triggered some caution from experts about AWS' efficiency.

"Microsoft said it was capability constrained, Google said it was capacity constrained. More than likely, Amazon is going to say it may have been capacity constrained also which's why its development rate isn't rather up to what the market might have anticipated," said Bob O'Donnell, chief analyst at TECHnalysis Research.

Some experts see the weak point at competitors as an indication that Amazon might have caught up in the AI race through efforts including doubling its investment in Anthropic and using a broad selection of AI designs on its cloud platform.

"We actually think that AWS is regaining share. It had been growing a lot slower than Microsoft Azure and Google Cloud for an amount of time, but we think 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. Gil Luria said.

The company has actually 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 information.

RETAIL STRENGTH

The e-commerce giant's results are also likely to gain from a healthy holiday shopping season, forum.pinoo.com.tr after competing retailers such as Target and a slew of clothing companies released rosy forecasts over the past month.

Amazon's North American sales for the fourth quarter are projected to rise 9% year-on-year. After a downturn in online sales development previously this year, experts state Amazon is primed for trademarketclassifieds.com a rebound in the retail organization, which has influenced its post-earnings share motions over the past two quarters.

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

The holiday costs growth rate of 8.7% almost doubled from the 4.9% tape-recorded in 2023, the data showed.

Amazon has actually also tried to improve delivery times and broadened item merchandise, including its concentrate on grocery, drug store and fashion - moves analysts state will help move growth.

"Most indicators are that it was a good quarter. There was a great holiday for the customer therefore there's a lot of reason to believe Amazon will have done well because side of the business," Luria said.

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