Microsoft increases capex due to strong demand
Microsoft is ramping up its capital expenditure plans for fiscal 2027, driven by strong demand across its portfolio.
The company’s chief financial officer noted that capex will grow year over year, indicating a need for more computing power.
This move is expected to benefit Nvidia, a primary supplier of computing equipment, and supports Nvidia’s projection of $1 trillion or more in data center capex from AI hyperscalers in 2027, up from an estimated $650 billion in 2026.