Microsoft’s Capex Surge Signals Strong Demand for Nvidia’s AI Infrastructure

Nvidia's upcoming earnings report is poised to reflect robust demand for its AI-driven components, as evidenced by soaring capital expenditures from tech giants. Microsoft announced a record $30 billion in capex for the current quarter, with Azure cloud revenue jumping 39% year-over-year. "Our infrastructure investments are accelerating to meet AI workload demands," CFO Amy Hood remarked during the earnings call—a tacit endorsement of Nvidia's hardware dominance.

The semiconductor leader's stock has rebounded sharply since April, briefly eclipsing a $4 trillion market cap. Meta similarly raised its capex forecast to $85 billion, while Alphabet revised its spending floor upward by $2 billion. This spending arms race underscores an industry-wide scramble for GPU clusters capable of training next-generation AI models.