Microsoft lowered its capital expenditure forecast to $170 billion from $175 billion, while Alphabet maintained its guidance at $195 billion to $205 billion, both falling short of analysts’ estimates. Delivery delays involving third-party graphics processing units have pushed some available capacity into the first half of 2027. Shares of CoreWeave, Nebius, IREN and Oracle fell after the reports, while Alphabet shares dropped about 10% in extended trading following earnings and revenue misses and negative free cash flow of more than $9 billion. Hyperscaler capital expenditure is expected to exceed $1 trillion next year, despite delays and financing difficulties facing artificial intelligence infrastructure companies. Amazon is due to report results, providing investors with a final read on hyperscaler spending for the quarter after Meta raised the lower end of its full-year forecast to $135 billion.
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