Microsoft’s Capex Update
Microsoft (NASDAQ: MSFT) has revised its capital expenditure (capex) forecast for 2026, projecting it to reach $190 billion, a 61% increase from the previous year and significantly higher than analysts’ expectations of $154.6 billion. This increase is primarily driven by inflated memory prices, which the company attributes $25 billion of the increased budget to, due to rising component costs in the tech industry.
The announcement came after a recent earnings report that showed stronger-than-expected growth, yet Microsoft’s stock did not respond positively, likely due to heightened concerns over escalating capex. The company is making substantial investments in artificial intelligence, underscoring its strategic focus on enhancing products and services despite potential short-term financial pressures associated with rising costs.
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