Mark Zuckerberg's big AI gamble seems to be paying off - at least for now. Meta's (META  ) shares got a nice bump late last month. The company's second-quarter results eased some of Wall Street's fears about overspending on artificial intelligence.

Here's the scoop: Meta reported a 33% increase in capital expenditures (Capex) for the second quarter, hitting $8.17 billion. And they're not stopping there. The company bumped the low end of its 2024 Capex forecast to $37 billion, keeping the upper limit at $40 billion. That's a lot of dough, but Zuckerberg's betting on AI.

Meta isn't alone in this spending spree. Big Tech players like Alphabet (GOOG  ) (GOOGL  ) and Microsoft (MSFT  ) are also throwing serious cash into AI infrastructure. Alphabet's Capex shot up 91%, and Microsoft's increased by 55% in the same quarter. But here's where it gets interesting: Wall Street reacted differently to each company's spending plans.

Take Alphabet, for example. Despite its massive AI investment, the stock took a hit. Investors were spooked by slightly lower-than-expected YouTube ad revenue. CEO Sundar Pichai's reassurance that underinvesting was riskier than overspending didn't do much to calm the market. The result? The tech sector saw its most painful sell-off in over a year.

Microsoft had its roller coaster moment. The company's cloud unit missed revenue estimates by just 1% - growing 29% instead of 30% - and their full-year Capex hit $69 billion, up 60% from the previous year. The stock initially plunged, but then CFO Amy Hood stepped in. She explained that the cloud revenue was hurt by European economic issues and "capacity constraints" - they didn't have enough infrastructure to meet AI demand. That reassurance helped the stock recover most of its losses.

So, why did Meta manage to keep investors happy while others stumbled? Angelo Zino, a CFRA analyst, thinks it comes down to clarity. Zuckerberg kicked off Meta's earnings call by laying out a concrete AI strategy. He talked about AI Studio, where users can create their own AIs, and Business AIs, which could eventually handle customer service or sales.

Zuckerberg's message was simple: Meta's AI is already boosting engagement across its platforms by improving content recommendations. This isn't just talk - Meta's revenue jumped 20% in the second quarter thanks to higher ad impressions and prices.

According to Zino, Meta's AI story is easier for investors to digest than the more complicated narratives from companies like Alphabet. And with Meta's strong growth numbers, they're outpacing the competition in the digital ad market.

For now, Zuckerberg's obsession with AI seems to be working. But in the ever-changing tech landscape, only time will tell if this big bet will keep paying off.