Big tech companies’ third-quarter earnings on Thursday demonstrated their outsize performance in advertising, retail and hardware sales. At the same time, most of the companies—most noticeably Amazon—are increasing spending on properties and data centers to pave the way for future growth despite continued uncertainty about the economy.
That’s good news for suppliers of servers and their components, which fill the data centers providing the vast cloud operations of the big companies. Amazon is a big spender in the cloud category through its AWS business, but it is also plowing money into an expansion of its warehouse and transportation sides, including sorting centers and delivery stations.
