Microsoft Slashes Capex by $15B, Embraces Multimodel AI After Blowout Q4
MSFT sits 28% above its 52-week low of $349.2 on elevated volume (2.7× avg).
Summary
Microsoft delivered a stellar Q4 with $90B revenue (+18%) and Azure growing 43%, but the real surprise is a $15B cut to its 2026 capex forecast to ~$175B, achieved by reclassifying data-center leases as operating leases and extending asset lives to 25 years. This follows a 24% YTD stock decline and a 15.5% surge on the blowout forecast, adding a major capital efficiency twist. The company also revealed a multimodel AI strategy, letting customers use OpenAI or Anthropic models, signaling flexibility amid Chinese AI competition. A new lawsuit alleges Microsoft hid Copilot and Azure AI technical issues, while new global partnerships, including in China, expand its entertainment footprint. The stock hit $455.86 on July 30, triggering a -3x short ETP rebalance, underscoring the violent move. Watch for further capex efficiency details and AI partnership developments.
At the time of this announcement, MSFT was trading at $448.47 on NASDAQ in the Technology sector, with a market capitalization of approximately $3.4T. The 52-week trading range was $349.20 to $555.45. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.