Microsoft and Alphabet Postpone Part of AI Infrastructure Spending
Shares of CoreWeave, Nebius, IREN, and Oracle fell following the release of reports amid uncertainty surrounding AI infrastructure.
Microsoft and Alphabet published their quarterly reports, in which capital expenditure forecasts fell short of analysts' expectations. Microsoft Chief Financial Officer Amy Hood stated that delays from third-party graphics processing unit suppliers would push some available capacity into the first half of 2027.
Alphabet Chief Financial Officer Anat Ashkenazi told analysts that external computing capacity only began operating at the very end of the third quarter. However, both companies gave no indication of halting the expansion of their AI infrastructure.
Hood expects capital expenditures to accelerate in the first half of 2027 due to rising component costs and delayed deliveries. The market will receive the next assessment of spending by major cloud companies after Amazon releases its report.
