- Microsoft says that Capex could rise 24% to $ 30 billion next quarter
- Almost half of this is intended for the CPU and GPU spending
- Azure Cloud Business continues to perform strongly thanks to efficiency gains
Microsoft has confirmed plans to invest more than $ 30 billion in capital expenses the next quarter alone, which makes it the most expensive quarter for the company to date.
If Microsoft follows, it would mark a 24% increase over its most recent financial quarter, during which the company allocated $ 24.2 billion to capital spending.
Although more than half went to long -term assets with more than 15 years of monetization potential, most of the rest was exclusively dedicated to CPUs and GPUs for the growing workloads of AI, highlighting not only the potential scale, but the amount of interest that Microsoft has, when it has the budget to assign billions to AI.
Microsoft spending big
Microsoft’s expenditure spree is part of a race to expand the ability of AI and the cloud as it continues to fight Amazon (currently the most popular cloud supplier in the world) and Google Cloud.
In terms of fiscal performance, the Q4 of the fiscal year of the company had an increase of 18% year after year in quarterly revenues, at $ 76.4 billion.
Among its most lucrative businesses, as expected, were cloud -related products. Microsoft 365 commercial cloud revenues rose 18% and 20% each, with intelligent cloud income of 26% to $ 29.9 billion and income for Azure and other cloud services in an amazing 39%.
Although companies everywhere want to stay aware of the AI curve, Microsoft could not impress so much with PC shipments. Windows OEM income and devices only saw an increase of 3%.
“Cloud and AI is the driving force of commercial transformation in all industries and sectors,” said CEO Satya Nadella.
The CFO Amy Hood explained that, although Microsoft Cloud Gross Margen had reduced two percentage points to 68%, the yield was better than expected thanks to “continuous efficiency gains.”
