Microsoft's Capex Spending for 2026 Is 23% Higher Than What Analysts Were Expecting. The Problem Is Rising Memory Prices
Microsoft's capital expenditure (capex) for 2026 is expected to be $190 billion, 23% higher than analysts' expectations of $154.6 billion. The increase is partly due to rising memory prices driven by high demand in the tech sector.
Microsoft is investing heavily in artificial intelligence (AI), with its capital expenditure (capex) for 2026 expected to be $190 billion. This represents a 61% increase from the previous year and is 23% higher than analysts' expectations of $154.6 billion. The tech giant's aggressive AI investments are driven by opportunities to enhance its products and services. Rising memory prices, due to inflated demand in the tech sector, are contributing to the increased capex. Microsoft's CFO, Amy Hood, attributed $25 billion of the spend to higher component pricing. Despite a strong quarter with revenue and earnings per share beating analysts' expectations, Microsoft's stock didn't rally due to concerns over the high capex.
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