Microsoft Capex Runs $5B Below Plan as Supermicro Lifts FY27 Outlook to $82B
MSFT sits 52% above its 52-week low of $349.2.
Summary
Microsoft's third-quarter capital spending came in roughly $5 billion under plan after third-party data center leases slipped, including an Iren project in Childress, Texas, and a withdrawn UK lease with Nscale over grid access delays. The company had committed $9.7 billion over five years to lease Nvidia GPU servers from Iren, so the deferral is a timing issue rather than a demand cut — Microsoft is renting capacity from other cloud providers while its own builds lag, and it has ended an Oracle AI deal. The read-through is mixed: less near-term capex is a modest free-cash-flow positive for Microsoft, but it also means Azure capacity arrives later than planned. Supermicro is the louder mover here, posting Q1 revenue of $19.95 billion against $16.39 billion expected and raising FY27 revenue guidance to $72-82 billion from $65-72 billion, which points to AI server demand running ahead of forecasts; its margin rose to 12.7% and it carried $5.67 billion in RPO. Bernstein cautions that AI demand math must account for contract cancellation terms, duration and phased deployment, since chip procurement and data center leases can cover the same capacity.
At the time of this announcement, MSFT was trading at $531.40 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.9T. The 52-week trading range was $349.20 to $559.15. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Binance News.