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Capital Expenditure

All articles tagged with #capital expenditure

AI spending sparks reevaluation of tech investor bets
business2 days ago

AI spending sparks reevaluation of tech investor bets

Investors are reassessing artificial intelligence investments as surging AI infrastructure spending could weigh on earnings growth and valuation multiples, even as demand for AI services remains robust. Large tech players like Microsoft, Alphabet and Meta can finance this capex through cash flow, but higher depreciation and potential slower share buybacks may pressure valuations. Oracle appears higher risk, while Nvidia could face competition as rivals develop their own AI chips. Overall, the long-term AI outlook remains positive, but the pace of revenue and margin expansion will influence whether current spending is justified.

via Yahoo Finance|
#ai-investments#artificial-intelligence#business
AI-Driven Memory Boom Spurs Record Capex for Micron, Benefits Lam Research
technology12 days ago

AI-Driven Memory Boom Spurs Record Capex for Micron, Benefits Lam Research

Micron Technology posted a blowout fiscal Q3 2026 as DRAM and NAND demand far outpace supply, with revenue up 346% year over year and EPS surging more than 1,200%. Management projects capex of about $27 billion for fiscal 2026, likely rising above $40 billion in fiscal 2027, as AI workloads keep memory demand strong into the next decade. This tight memory market also supports Lam Research, a key memory-fab equipment supplier, contributing to an upbeat outlook for AI infrastructure stocks.

via The Motley Fool|
#ai-demand#capital-expenditure#lam-research
Oracle trims 21,000 roles as AI push reshapes its workforce and spending
business21 days ago

Oracle trims 21,000 roles as AI push reshapes its workforce and spending

Oracle cut about 21,000 jobs, roughly 13% of its workforce, bringing headcount to 141,000 as it accelerates AI deployment and restructures operations. The company reported a jump in restructuring costs to $1.8 billion, negative free cash flow of $23.7 billion, and capital expenditure of $55.7 billion (up 162%). Oracle also signaled ongoing workforce realignments and plans to raise roughly $50 billion in debt and equity, with its stock dipping about 1% after the news amid a broader tech AI-investment wave.

via CNBC|
#ai#business#capital-expenditure
Private capital set to finance AI data-center expansion, Goldman says
business1 month ago

Private capital set to finance AI data-center expansion, Goldman says

Goldman Sachs says private infrastructure and real estate will play a larger role in financing the AI-driven data-center boom, lifting capex forecasts for Meta, Microsoft, Amazon and Alphabet to about $5.3 trillion for 2025–2030 (up from $4.5 trillion). Funding will come from public, securitized and private markets as data-center projects blur lines across land, power, buildings and equipment. Private infra’s inflation-protected income could accelerate growth, with assets under management expected to top $3 trillion by 2030, after an 11.5% annualized rise 2021–2024.

via Yahoo Finance|
#ai-data-centers#business#capital-expenditure
Alphabet to fund AI surge with $80B stock sale plan
business1 month ago

Alphabet to fund AI surge with $80B stock sale plan

Alphabet plans to raise about $80 billion by selling stock, including a $10 billion investment from Berkshire Hathaway, to fund expanded AI compute infrastructure as demand surges; the move comes with an updated capex outlook of up to $190 billion for the year, with roughly $30 billion in underwritten offerings (including $15 billion in depositary shares) and about $40 billion via an ATM program beginning in Q3, managed by Goldman Sachs, JPMorgan Chase and Morgan Stanley, with Berkshire’s stake having been around $20 billion prior to the announcement. Analysts see AI capex potentially exceeding $1 trillion by 2027.

via CNBC|
#ai-compute-infrastructure#alphabet#berkshire-hathaway
Meta’s pivot to cost discipline: capex blamed for layoffs, with more cuts not ruled out
business2 months ago

Meta’s pivot to cost discipline: capex blamed for layoffs, with more cuts not ruled out

Meta Platforms CEO Mark Zuckerberg said the company’s layoffs were driven by aggressive capital spending on infrastructure and other long-term investments, such as data centers, and that they would continue cost-cutting measures. He did not rule out additional job cuts if expenses don’t align with revenue trajectories, signaling ongoing belt-tightening at the tech giant.

via Yahoo Finance|
#business#capital-expenditure#job-cuts
AI Buildout Set to Top $1 Trillion in 2027, Boosting Global Tech Spending
business2 months ago

AI Buildout Set to Top $1 Trillion in 2027, Boosting Global Tech Spending

Analysts now expect AI-related capital expenditures to exceed $1 trillion by 2027 as Alphabet, Amazon, Microsoft and Meta disclose large buildouts; 2026 capex is projected to reach $800–$900 billion, with Google Cloud backlog surging and cloud revenue growth supporting monetization. The spending fuels demand for chips and data-center infrastructure, even as investors weigh ROI and remain cautious about Meta’s returns, making the AI capex cycle a key driver for chipmakers and infrastructure providers.

via CNBC|
#artificial-intelligence#business#capital-expenditure
Tesla bets big on robots and robotaxis as Q1 profits rise
business2 months ago

Tesla bets big on robots and robotaxis as Q1 profits rise

Tesla posted a Q1 profit of $477 million on $22.39 billion in revenue (below expectations) as car sales rebounded; CEO Elon Musk outlined a hefty investment push into self‑driving taxis, humanoid robots (Optimus) and AI infrastructure, with capital expenditure forecast above $25 billion this year, signaling a shift toward services and automation even as traditional EV sales slow and competition heats up.

via Euronews.com|
#business#capital-expenditure#musk
Jassy doubles down on Amazon's $200B bet on AI, chips and growth
business3 months ago

Jassy doubles down on Amazon's $200B bet on AI, chips and growth

Amazon CEO Andy Jassy defends roughly $200B in capex planned for 2026, arguing demand and economics justify bets on AI, custom chips, and related initiatives. He notes AWS AI revenue at about a $15B annual run rate and internal chips revenue above $20B, with two large customers seeking all Graviton capacity in 2026 (which Amazon declined). The letter frames AI as a once-in-a-lifetime opportunity, acknowledges a drop in free cash flow due to capital spending, and highlights progress across grocery, satellite broadband, Now delivery, Alexa+, and Zoox, while signaling possible external sales of chip racks and broader robotics opportunities. Trainium deployments are advancing, underscoring that Amazon’s “Day 1” strategy remains to invest heavily for long-term leadership.

via GeekWire|
#amazon#andy-jassy#artificial-intelligence
Micron Stock Dips After Strong Q2 as Analysts Split on AI-Driven Outlook
business3 months ago

Micron Stock Dips After Strong Q2 as Analysts Split on AI-Driven Outlook

Micron beat fiscal Q2 estimates on AI-driven demand, but shares fell about 4% after hours as management signaled a large capex push (>$25 billion in 2026 with more in 2027) and analysts offered mixed views on margins and pricing as supply tightness eases. TipRanks shows a Strong Buy consensus with 24 Buy and 2 Hold, and an average 12-month target of about $473, signaling modest upside amid divergent views on the stock’s next move.

via TipRanks|
#ai-demand#business#capital-expenditure