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On October 29, 2026, Richard Abbey and John Authers wrote that the peak in AI capital expenditure may have already occurred. The article noted that Alphabet's revenue fell short of analysts' expectations, with its after-hours share price dropping as much as 10%, reflecting heightened market concerns over its continued investment of hundreds of billions of dollars in building AI infrastructure; Microsoft, meanwhile, received positive feedback as its cloud business revenue beat expectations and Azure sales grew 48%, with its capital expenditure at $45.2 billion, below the market expectation of $45.9 billion. Analyst Luke Lango believes the stock market has already become uneasy about the scale of investment by major cloud providers, and that the peak in AI capital expenditure may have already occurred. This judgment currently remains an analytical opinion, with no subsequent factual developments yet.
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Oct 29
Sina Tech
Analyst: Investors Worry That Peak AI Capital Expenditure Has Arrived
In an article, Richard Abbey and John Authers pointed out that Alphabet's revenue fell short of analyst expectations, and its after-hours stock price at one point plunged 10%, reflecting heightened market concerns over its continued investment of hundreds of billions of dollars in building AI infrastructure. Microsoft received positive feedback because its cloud business revenue beat expectations and Azure sales grew 48%; its capital expenditure was $45.2 billion, below the market expectation of $45.9 billion. Analyst Luke Lango believes that the stock market is already uneasy about the scale of investment by large cloud vendors, and the peak of AI capital expenditure may have already appeared.