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Capital Expenditure

All articles tagged with #capital expenditure

Jassy doubles down on Amazon's $200B bet on AI, chips and growth
business1 day 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
business23 days 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
AI Compute Boom Triggers Mega-Capex Wave Led by Amazon’s $200B Plan
technology2 months ago

AI Compute Boom Triggers Mega-Capex Wave Led by Amazon’s $200B Plan

A global surge in AI infrastructure spending is accelerating, led by Amazon’s plan to invest about $200 billion in capex this year. This beacon of demand is lifting data-center and neoscaler players, stipulating higher chip and memory prices as hyperscalers and cloud providers like Google, Microsoft, and others expand capacity. Memory prices have surged 28–35% in early 2026, reinforcing the push for suppliers like Nvidia, Broadcom, AMD, Micron, and Sandisk, while cloud backlogs across AWS, Google, and Microsoft total about $1.1 trillion. Analysts expect 2026 capex to rise roughly 50% for the big four (Amazon, Alphabet, Microsoft, Meta), underscoring a sustained AI hardware boom and reshaping the supply chain for the year ahead.

via Sherwood News|
#ai#amazon#capital-expenditure
Alphabet’s mega-capex plan rattles investors as AMD slides
business2 months ago

Alphabet’s mega-capex plan rattles investors as AMD slides

Alphabet topped estimates but guided 2026 capex at $175–$185B, sending shares lower after hours; AMD tumbled about 17% on weak Q1 guidance, dragging AI names and weighing tech stocks. Major indices were mostly lower (Nasdaq/S&P 500 down) with the Dow modestly up. Other headlines included Panama’s port license ruling, U.S. plans mineral price floors with Mexico/EU/Japan, and ongoing policy discussions affecting markets.

via CNBC|
#ai#alphabet#amd
ASML bookings soar as SK Hynix plans bold capex push
industries2 months ago

ASML bookings soar as SK Hynix plans bold capex push

ASML reported fourth-quarter bookings of €13.16 billion, up 86% and well above estimates, as AI-related demand boosted both memory and logic‑chip equipment. The Netherlands‑based company posted €2.89 billion profit on €9.72 billion in sales, guided 2026 sales to €34‑39 billion with a 51‑53% gross margin, and unveiled a buyback of up to €12 billion through 2028 plus a 17% dividend increase to €7.50 a share. In the same period SK Hynix signaled a substantial increase in capital expenditure after a 90% rise in Q4 profit and a 66% jump in revenue, driven by AI workloads and memory demand; both companies reflect a robust AI‑driven semiconductor cycle.

via MarketWatch|
#asml-holding#capital-expenditure#earnings
Oracle's AI Expansion Sparks Growth Hopes Amid Market Concerns
business3 months ago

Oracle's AI Expansion Sparks Growth Hopes Amid Market Concerns

Oracle's stock faces a complex outlook as it benefits from a 68% surge in cloud revenue and a 177% increase in GPU sales driven by AI demand, while also planning a significant $50 billion capex for 2026 and experiencing a $10 billion negative free cash flow. The company's large AI contracts and collaborations position it for growth, but high capital requirements and competition from Microsoft and Amazon pose challenges. Oracle's stock currently trades at a premium and is rated a hold by Zacks.

via Zacks Investment Research|
#ai-infrastructure#business#capital-expenditure
Meta's Stock Tumbles Amid Spending and AI Concerns
business5 months ago

Meta's Stock Tumbles Amid Spending and AI Concerns

Meta Platforms' stock dropped 11% after its Q3 earnings report despite beating financial expectations, due to concerns over increased AI-related spending and higher capital expenditure guidance for 2025. The company reported strong revenue growth and robust user engagement, with significant investments in AI and virtual reality, though its Reality Labs division continues to incur substantial losses. Analysts remain optimistic about META's long-term growth, with many recommending a strong buy at its current valuation.

via Barchart.com|
#ai-investment#business#capital-expenditure