Are the capital expenditures of tech giants approaching their limits?
Under the AI frenzy, the capital expenditures of the three giants, Microsoft, Google, Amazon, and Meta, are approaching a very high level of nearly 60% of gross profit. Among them, by 2026, the capital expenditure of both Microsoft and META will exceed 60% of gross profit. Although META has not yet launched external cloud services, its spending level has reached or even surpassed that of the three major cloud service providers. The group's capital intensity has increased from an average of 27% from 2017 to 2022 to 57%
Under the AI frenzy, the capital expenditures of the three giants, Microsoft, Google, Amazon, and Meta, are approaching a very high level of nearly 60% of gross profit.
As of 2026, both Microsoft and META's capital expenditures will exceed 60% of gross profit. Although META has not yet launched external cloud services, its spending level has reached or even surpassed that of the three major cloud service providers. The group's capital intensity has increased from an average of 27% from 2017 to 2022 to 57%.
