Tech giants Microsoft, Meta, Alphabet, and Amazon are ramping up investments, projecting a combined capital expenditure of up to $364 billion for fiscal year 2025 — a sharp rise from their earlier $325 billion estimate, largely fueled by their aggressive push into AI.
Despite the massive increase, investor sentiment remained strong. Shares of Meta and Microsoft jumped 11% and 4% respectively following earnings releases, with Microsoft briefly surpassing a $4 trillion market cap. Alphabet also saw a stock boost after posting strong results.
- Microsoft: Reported FY25 capex of $88.7B, up from $80B, and expects to spend $30B in Q1 FY26 — 50% more than last year. CFO Amy Hood highlighted ongoing investment in cloud and AI leadership.
- Meta: Raised the bottom end of its 2025 capex forecast to $66B–$72B, higher than its earlier range. CFO Susan Li said 2026 will likely see another year of “significant CapEx growth” as the company scales its AI infrastructure.
- Alphabet: Now expects to spend $85B in 2025, up from a previous $75B forecast, citing high demand for its cloud offerings.
- Amazon: Although specific figures weren’t disclosed in this release, the company’s ongoing AI-driven cloud and logistics investments are contributing to the collective total.
Analysts responded positively. Wedbush raised Meta’s price target to $920 (from $750), RBC Capital lifted Microsoft’s to $640 (from $525), and Needham increased Alphabet’s to $220 (from $210), all citing AI momentum.