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Capital Expenditures

All articles tagged with #capital expenditures

Intel taps $15 billion stock offering to bankroll AI infrastructure push
business18 days ago

Intel taps $15 billion stock offering to bankroll AI infrastructure push

Intel announced a $15 billion common stock offering to fund surging AI compute demand, with proceeds slated for capital expenditures and working capital as it focuses on growth areas like physical AI, purpose-built silicon and advanced packaging. The move comes as tech giants boost AI-related capex amid a broader infrastructure build-out, following Intel’s recent surge in revenue and raised capex guidance to $20 billion. The offering includes a 30-day option for underwriters to purchase an additional $2.25 billion, and the company benefits from government support for domestic chip manufacturing as its stock has rallied in 2026.

via CNBC|
#ai-demand#business#capital-expenditures
Meta stock sinks 10% after earnings miss, capex outlook spooks investors
company-earnings1 month ago

Meta stock sinks 10% after earnings miss, capex outlook spooks investors

Meta Platforms reported Q2 EPS of $6.18 on $60.8B revenue (missed estimates of $7.14 EPS on $60.2B revenue) while advertising revenue rose to $59.3B, beating expectations. The company also raised the lower end of its 2026 capex guidance to $135-145B and signaled capex could exceed $145B, largely for data centers. Analysts were underwhelmed, calling the quarter barely passable as cash flow remained only modestly positive; the stock fell about 10% in premarket trading amid concerns about higher capital spending and cash generation.

via Yahoo Finance|
#advertising-revenue#capital-expenditures#company-earnings
Google’s AI spending spree triggers first negative free cash flow
business1 month ago

Google’s AI spending spree triggers first negative free cash flow

Google reported $119.8B in revenue for Q2 2026, but its aggressive AI infrastructure spending—about $44.9B in the quarter—pushed free cash flow to -$5.8B for the first time. Operating cash flow was roughly $39.1B; management now envisions 2026 capex up to $205B as Google expands data centers and Gemini chips. Revenue remains strong across Search, Cloud, YouTube, and subscriptions, yet investors are weighing AI costs and profitability going forward.

via Ars Technica|
#ai-spending#business#capital-expenditures
Alphabet's Profits Keep Pace With AI Spending Boom
finance1 month ago

Alphabet's Profits Keep Pace With AI Spending Boom

Alphabet's profits show resilience as AI infrastructure spending surges: Q1 operating margin rose to 36.1% (a five-year high), with revenue up 22% and operating income up 30%. Cloud revenue jumped 63% to over $20 billion and Search grew about 19%. However, capex jumped to about $35.7 billion last quarter and is expected to approach $44 billion next quarter, with full-year capex up to $190 billion; depreciation will weigh on profits as these assets come online, and margins may ease toward the mid-30s this quarter as the AI bill continues to climb.

via Yahoo Finance|
#ai-spending#alphabet#capital-expenditures
Amazon to Raise at Least $25 Billion With Bond Sale to Back AI Expansion
business1 month ago

Amazon to Raise at Least $25 Billion With Bond Sale to Back AI Expansion

Amazon plans an eight-part bond sale to raise at least $25 billion to fund its AI buildout and has told underwriters it won’t issue more debt in 2026; the move follows substantial prior bond issuance and aligns with a roughly $200 billion capex outlook this year, with proceeds to be used for general corporate purposes including investments, capex and debt repayment.

via CNBC|
#amazon#artificial-intelligence#bonds
AI Arms Race Keeps Tech Giants Betting Big on Compute
technology2 months ago

AI Arms Race Keeps Tech Giants Betting Big on Compute

Despite stock dips, the biggest tech firms aren’t cutting AI budgets, with Wedbush’s Dan Ives calling the AI revolution an arms race driven by compute power and capex as monetization accelerates in 2026–27. Goldman Sachs estimates about $5.3 trillion in combined capex for Meta, Microsoft, Amazon and Alphabet from 2025–2030, and a baseline $7.6 trillion across 2026–2031 for compute, data centers and power, with about $725 billion planned for 2026—even as the Magnificent Seven slip from their 52-week highs.

via Yahoo Finance|
#artificial-intelligence#capital-expenditures#hyperscalers
Meta’s Q1 Preview: Hold Maintained as AI Push Faces a Massive Capex Burden
business4 months ago

Meta’s Q1 Preview: Hold Maintained as AI Push Faces a Massive Capex Burden

Benchmark analyst Mark Zgutowicz reiterates a Hold on Meta ahead of its Q1 results, noting solid execution but signaling a reset in long‑term spending as Meta trims costs (10% headcount reduction and 6,000 roles) and faces more than $750 billion in CapEx over the next five years. Meta’s AI-driven ad engine Advantage+ is contributing about $60 billion in annualized ad revenue (roughly 30% of total ad revenue), yet investors will want clarity on how these investments translate to long‑term growth and margins. Despite the spend, Wall Street shows a Strong Buy consensus with a target around $854.46 per share, implying roughly 27% upside.

via TipRanks|
#ai#business#capital-expenditures
Meta trims 8,000 jobs as it doubles down on AI expansion
business4 months ago

Meta trims 8,000 jobs as it doubles down on AI expansion

Meta Platforms plans to cut about 8,000 jobs (roughly 10% of its workforce) and close around 6,000 open roles, effective May 20, as it continues a heavy AI-driven expansion. The layoffs come amid a broad AI-spending spree—about $72.2 billion in 2025 capex, with 2026 projections at or above $115 billion—driven by CEO Mark Zuckerberg’s view that AI will dramatically change how the company operates. Affected US employees will receive 16 weeks of base pay plus two weeks of pay for each year of service, with international packages similar.

via CNN|
#ai#business#capital-expenditures
Big Tech bets record AI-driven capex for 2026 across Amazon, Alphabet, Meta and Microsoft
business6 months ago

Big Tech bets record AI-driven capex for 2026 across Amazon, Alphabet, Meta and Microsoft

Big Tech unveils a record AI-driven capex surge for 2026, with Amazon planning about $200B, Alphabet $175–185B, Meta $115–135B, and Microsoft around $97–98B; investors reacted with stock declines for Amazon, Alphabet, and Meta, while Microsoft posted a modest gain, as analysts warn the ROI on massive infrastructure spending will be key and AI initiatives like Google's Gemini backlogs support the spending rationale.

via Business Insider|
#ai#amazon#business
Azure momentum and big-capex push set stage for Microsoft’s Q2 results
business7 months ago

Azure momentum and big-capex push set stage for Microsoft’s Q2 results

Ahead of and after Microsoft’s Q2 release, Azure AI demand remains a focal point with analysts expecting roughly 38% revenue growth. The company beat on revenue ($81.3B) and EPS ($4.14) while capital expenditures jumped about 66% to $37.5B, reflecting aggressive data-center and AI-infrastructure spending. Microsoft has expanded AI partnerships (Anthropic) and rolled out the Maia 200 AI chip, signaling continued AI-driven investment amid debate on AI demand and capacity.

via Sherwood News|
#ai#azure#business