Intel, Microsoft, Meta: AI spending drives cuts in 2026

A reshuffle across Big Tech as AI bills rise

Microsoft (MSFT) and Meta Platforms (META) are planning cost actions that could affect as many as 23,000 jobs, as both companies try to streamline operations while maintaining heavy spending on artificial intelligence. The moves come as investors scrutinise whether record AI-related capital expenditure is translating into near-term profit growth. In the same earnings cycle, chipmaker Intel (INTC) posted a stronger-than-expected outlook for the June quarter, feeding a renewed narrative that the build-out of AI infrastructure is starting to lift parts of the semiconductor supply chain. Stocks across the technology complex reacted sharply, with Microsoft falling after cloud results, while Meta climbed on advertising strength and a bigger AI spending plan.

Microsoft offers voluntary buyouts to US employees

Microsoft issued an internal memo offering voluntary buyouts to thousands of US employees, according to details described by a person familiar with the planning. About 7% of its US workforce will be eligible for the buyouts, the person said. Microsoft had 125,000 employees in the US as of June 2025, implying about 8,750 workers could be eligible for the programme. The source added that Microsoft has not previously done buyouts at this scale. The company’s shares fell in trading on the day the buyout plan was reported, underscoring how sensitive the market remains to both cloud growth signals and the cost of AI investment.

Microsoft’s earnings: strong headline numbers, cost concerns

In the broader market coverage tied to the earnings releases, Microsoft and Meta were described as beating revenue forecasts, even as investors focused on AI spending and cloud momentum. One report cited Microsoft revenue of USD 81.27 billion for the quarter, net income of USD 35.37 billion, and earnings per share of USD 4.14 versus an expectation of USD 3.92. But capital expenditure for the quarter was reported at USD 37.5 billion, above an analyst estimate of USD 36.2 billion. The stock reaction was negative in multiple accounts: Microsoft was described as the biggest drag on the S&P 500, with a separate note saying the shares slumped 10% after cloud revenue disappointed and raised questions about the pace of returns from its OpenAI alliance. Bloomberg also reported Microsoft shares fell about 5% in extended trading after closing at USD 481.63 in New York.

Meta’s AI push expands, even as job cuts are flagged

Meta’s results drew a different response. In one market wrap, Meta rallied 10.4%, “bucking the trend” among megacaps, alongside an upbeat revenue forecast and a 73% jump in the company’s capital expenditure budget for the year. Another report said Meta’s shares jumped more than 11% in extended trading. Meta projected first-quarter sales of USD 53.5 billion to USD 56.5 billion, beating an average analyst estimate of USD 51.3 billion. Separately, one account said capex could rise to USD 135 billion this year, well ahead of expectations.

Beyond financials, Meta’s AI leadership and infrastructure plans were also in focus. The company hired President Trump’s former security adviser, Dina Powell McCormick, as its new president and vice chair, and announced a new AI compute initiative aimed at scaling infrastructure. At the same time, the New York Times was cited as reporting that Meta will cut about 10% of employees within its Reality Labs division.

Intel signals demand tailwinds from AI infrastructure build-out

Intel, long seen as a turnaround story in chips, gave a strong sales forecast for the quarter ending in June. The company said revenue will be USD 13.8 billion to USD 14.8 billion, signalling it may be starting to benefit from the ongoing build-out of AI infrastructure. In a separate data point, Intel’s stock was reported to have risen sharply on April 23, 2026, gaining USD 8.29 or 12% to USD 75.07 in after-hours trading. The same snapshot listed Intel’s market capitalisation at USD 335.30 billion, a GF Score of 69/100, and insider selling of USD 0.001 billion over the past three months.

Another Intel-focused note claimed the stock has surged about 248% over the past year, compared with Taiwan Semiconductor’s 149% and Nvidia’s 106% gains, framing the move as a possible shift within the AI chip market. That note also said Intel has ramped up chipmaking equipment orders by over 50% year-on-year at the start of 2026, and that its 18A process node entered high-volume production at around 10,000 wafer starts per week.

Analyst calls and the foundry debate

Wall Street sentiment on Intel appeared mixed in the provided analyst snapshot. It listed 29 analyst ratings: 5 Buy, 19 Hold, and 5 Sell, with the overall stance shown as “Hold”. The same section displayed “Current: 65.270” alongside a low of 20.00, an average of 39.30, and a high of 52.00, indicating the figures reflect a specific feed rather than the after-hours move referenced elsewhere.

On upgrades, the text cited HSBC analyst Frank Lee upgrading Intel to Buy from Hold with a USD 95 price target. Another upgrade line referenced HSBC and BNP Paribas with a USD 66.89 figure dated 2026-04-21, and noted “Intel up 2% to USD 66.89 after HSBC, BNP Paribas upgrades.” At the same time, the coverage highlighted a key risk: Intel’s foundry division was said to be facing approximately USD 10 billion in annual losses amid competitive pressure from TSMC and Samsung.

Other market movers: IBM up, ServiceNow down, Mobileye buyback

The tech earnings cycle also produced large single-stock moves beyond the megacaps. IBM shares rose 5% after fourth-quarter earnings beat estimates in one summary. ServiceNow shares were reported down nearly 14% in premarket trading after what was described as a “noisy” earnings report, with KeyBanc and Jefferies lowering price targets. Texas Instruments was highlighted for data center segment growth of 90% year-on-year and a premarket share price increase of over 10% after a strong guide.

In autonomous driving, Mobileye’s board authorised a share repurchase programme of up to USD 0.25 billion. The same coverage cited adjusted diluted EPS of USD 0.12, a 51% increase from the previous year, while also noting a GAAP loss per share of USD 4.68. Another detail said Mobileye’s cash balance decreased by USD 0.591 billion after acquiring Mentee Robotics.

Market impact: investors reward clarity on demand, punish uncertainty

The market reactions described in the text show a consistent pattern: investors are increasingly separating AI “spending intensity” from “spending effectiveness.” Microsoft’s share declines were linked to cloud growth missing expectations and to the perception that large AI outlays may take longer to translate into earnings power. Meta’s gains, by contrast, were tied to stronger advertising-driven revenue momentum and forecasts that exceeded expectations, allowing investors to tolerate a larger capex plan. Intel’s jump reflected optimism that AI infrastructure demand is beginning to surface in near-term revenue guidance, even as concerns remain around foundry losses and competitive pressures.

Key numbers at a glance

Analysis: why this matters for the AI ecosystem

Taken together, the updates highlight how the AI cycle is reshaping corporate decision-making across software, internet platforms, and semiconductors. Microsoft’s buyout plan and the reference to job actions at Meta point to an effort to offset rising infrastructure costs and keep operating leverage intact. Meta’s ability to pair higher AI capex with a positive share reaction, as described, reflects investor comfort when top-line momentum and guidance are strong enough to fund spending. Intel’s guidance and stock move suggest that parts of the chip supply chain can benefit as data centers expand, but the ongoing debate over foundry profitability remains central to how the market values its turnaround.

Conclusion

The reporting points to a clear trade-off in 2026: Big Tech is keeping AI investment elevated while trying to tighten headcount and operating costs. Microsoft’s large-scale US buyout offer and Meta’s reported Reality Labs cuts sit alongside aggressive capex plans, while Intel’s revenue outlook and sharp after-hours jump underscore the demand pull from AI infrastructure. Next milestones to watch, based on the information provided, include upcoming earnings from other large companies mentioned in the market coverage and further updates tied to Microsoft’s cloud trajectory and Meta’s spending plans.