The hyperscale space has been a hot topic of discussion among investors and analysts alike, with Amazon (AMZN) and Microsoft (MSFT) being two of the most notable players in this arena. Recently, there have been some interesting developments in the sector that are worth exploring in more detail.

Firstly, let’s take a look at AMZN. As we mentioned earlier, the company has seen significant momentum post-earnings, particularly as Jassy outlined the high ROIC case for compute build. This has led to increased interest in the stock, with many analysts and investors viewing it as a strong buy. In fact, J. Schlegel recently noted that hyperscaler positioning has moved from -1.5z vs. historical to now neutral, indicating a more balanced outlook on the sector.

However, there is also some interesting activity going on within AMZN itself. Notably, Bezos has sold 1.2 million of the 15 million shares filed, which is a departure from his normal sale cadence. While it’s difficult to read too much into this without more context, it does raise some questions about the company’s future plans and strategies.

On the other hand, MSFT has also been gaining momentum in the hyperscale space. As Schlegel notes, the company is now seen as one of the largest buy names on the desk, indicating increased confidence in its growth prospects. This is particularly notable given the company’s recent announcements around its compute build and cloud infrastructure.

Overall, these developments highlight the growing importance of the hyperscale space in the technology industry. As more and more companies shift their operations to the cloud, the demand for robust infrastructure and services is only likely to increase. For investors and analysts alike, keeping a close eye on the latest developments in this space can provide valuable insights into the future prospects of these companies.