微软和亚马逊在2024年第三季度的资本支出总额为426亿美元，其中Alphabet维持在每季度130亿美元左右的水平，Meta开始加速支出。Loop Capital Analyst modified Microsoft’s price target in the Software rating.
Loop Capital Analyst Yun Kim released a research report on December 23, adjusting expectations for certain software companies. The analyst raised the price target for $Microsoft (MSFT.US)$ from $500 to $550 and confirmed a Buy rating for the stock. Kim pointed out that due to the substantial capital expenditure investments required to support generative AI programs, people's general expectations for the company's performance in the coming years have been artificially lowered. The analyst noted that Microsoft’s stock should be priced significantly higher than other large software companies.
In the era of AI, capital expenditure has always been a major issue. In the first half of 2023, large Technology companies had a capital expenditure of approximately $74 billion. By the third quarter of that year, this figure had risen to around $109 billion. In the first half of 2024, large Technology companies spent nearly $104 billion, an increase of 47% year-on-year. By the third quarter, this figure soared to $170 billion, a 56% increase compared to the same period last year.
The total capital expenditure of Microsoft and Amazon in the third quarter of 2024 was $42.6 billion, while Alphabet maintained a level of around $13 billion per quarter, and Meta began to accelerate its expenditure.
During Microsoft's Earnings Reports conference call, Chief Financial Officer Amy Hood stated that capital expenditures, including financing leases, amounted to $20 billion, which was in line with expectations, while cash expenditures on Real Estate, plants, and equipment totaled $14.9 billion.
Hood told Analysts: "About half of our Cloud and AI-related expenditures will continue to be allocated to long-term Assets, which will support monetization over the next 15 years or longer, while the remainder of the Cloud and AI expenditures is mainly for Servers, including CPUs and GPUs, to serve customers based on demand signals."
She stated that the free cash flow was $19.3 billion, a decrease of 7% year-on-year, "reflecting the increased capital expenditures supporting Cloud Computing and AI products."
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