GoKawiilMicrosoft, Alphabet trim or hold AI capex forecasts, citing GPU delays
In quarterly earnings, Microsoft lowered its fiscal-year capex guidance to $170 billion from $175 billion, while Alphabet kept its $195-205 billion range unchanged. Both companies cited supply delays from third-party GPU providers, with Microsoft CFO Amy Hood saying some capacity won't be available until the first half of 2027, and Alphabet's CFO noting outside computing power only came online late in the quarter.
GoKawiil's interpretation of the reporting above, not reported fact.
The pullback or plateau in spending forecasts, after quarters of escalating capex, could signal that physical constraints like chip and data-center supply are starting to bottleneck AI infrastructure growth rather than demand itself. Shares of GPU-reliant neoclouds like CoreWeave, Nebius and IREN fell on the news, suggesting investors see these supply delays as a risk to companies dependent on hyperscaler contracts. Alphabet's stock drop and negative free cash flow also hint that markets are growing more sensitive to how AI spending translates into near-term financial results.
- Microsoft cut its yearly capex forecast to $170B from $175B; Alphabet held steady at $195-205B.
- Executives blamed GPU supply delays from third-party providers, pushing some capacity to 2027.
- Neocloud stocks (CoreWeave, Nebius, IREN) and Oracle fell on the news, while Alphabet shares dropped sharply after missing earnings estimates.
Source: cnbc.com — Jordan Novet, 2026-10-29
Published there as: “AI build-out hits snag as Google and Microsoft put off raising capex forecasts”
Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.