CNBC April 25, 2024
Key Points
– Microsoft’s demand for consumption-based artificial intelligence services in the cloud is outstripping supply, CFO Amy Hood said on the company’s earnings call.
– The company will again materially bump up capital expenditures in the current quarter, she said.
– Capital expenditures jumped 79% from a year earlier to $14 billion in the latest quarter.
Microsoft is increasing spending at a rate not seen since at least 2016. It still might not be enough.
In its earnings report on Thursday, Microsoft said capital expenditures jumped 79% from a year earlier to $14 billion. The company is spending much faster than it’s increasing revenue — sales climbed 17% in the period.
Even with all that investment, Microsoft has...
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