Hyperscaler earnings concluded last week, and with the exception of Meta, the remaining hyperscalers outperformed both the S&P 500 and SMH over the last 5 days and 1 month period. Investors rewarded Amazon and Microsoft post earnings, with Amazon's clear AI capex payback framework driving strong investor confidence. Hyperscaler AI capex remains robust, with 2026 guidance raised to $750B, as accelerating cloud demand and rising component costs fuel spending. Despite near-term negative FCF concerns and rising credit spreads, the author expects operating leverage and FCF to surge post-2027 as backlog converts at higher prices along with higher volume. The author maintains Amazon and Meta as their largest positions, viewing current valuations as attractive and monitoring credit spreads and power constraints for risk.