Money does not solve all problems, but $ 37.4 billion should be solved.
According to the company’s revenue report on Wednesday afternoon, this was a combination of Microsoft and Meta platforms in the quarter of December. The expenditure was higher than what Wall Street expected, but it goes without saying almost twice the same period of the previous year. Most of them go to chips and data centers to power generated artificial intelligence services.
It must have been a great news for NVIDIA. However, the major AI chip manufacturer in the market saw shares slipping out of business hours following the two largest customer reports. And that last week, about 15 of the company’s stock prices have already been made since the company’s AI startups have published an advanced AI model in some of the computing costs needed by US competitors in the United States. It continues to be cut off by % discount. Since NVIDIA is one of the three companies that have been evaluated for more than $ 3 trillion, such a fall has a wide mark. According to Dow Jones Market data, the US stock market was only about $ 1 trillion, and it was wiped out only on Monday.
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Microsoft and Meta are two very different businesses, one of the major things in common. Both spend about 30 % of the annual revenue to Capex. This is much larger than the rivals committed by Amazon.com and Google’s parents, Alphabet. But investors give Facebook companies a much longer rope. In Microsoft, Meta’s stock price has risen about 70 % in the last 12 months, but the market has not been delayed to the market. As a result, some pressure on the software Titan has been applied, indicating that AI investment is immediately rewarded.
Wednesday reports did not do it at all. The profit and operating profit of Microsoft’s intelligent cloud segments was under Wall Street forecast, as reported by the Azure Public Cloud service. The company also issued unfortunate earnings forecasts, adding a stronger US dollar to have a more negative impact than the estimated three months ago. Microsoft’s shares slipped nearly 5 % in outside business hours.
As far as capital spending, Microsoft expects that the following two quarters will be similar to $ 22.6 billion spent in the previous quarter. The company did not say whether Deepseek’s breakthrough would ultimately reduce spending to AI computing.
“We have been enhancing significant efficiency in both training and reasoning for many years,” said the Microsoft call, Satha Nadella, said, “AI is more efficient and easy to access. Demand is seen in terms of exponential function. “
META’s Mark Zuckerberg states that Capex has a large investment ability as a strategic advantage over time.
Mark Zuckerberg, a meta boss, doesn’t seem to tap the spending brake on his side. On his own phone, he stated that the ability to invest a large amount of Capex would be “strategic advantage” over time. He added.
Meta has already announced plans to significantly increase this year’s Capex expenditure this year, and its social network business has still produced enough cash to support it. The company’s advertising revenue increased 21 % year -on -year in the fourth quarter to $ 46.8 billion, reaching a high price of 48 %. The company has even lost $ 1 billion less than the analysts expected in the real lab segment. This year, the plan to drop at least $ 600 billion in the AI buildout is a little useful.
Write to dan gallagher on dan.gallagher@wsj.com
