There's a common payment misconception worth clearing up. If you buy an off-plan property and pay 10% across 4 tranches followed by 60% on handover, does that mean you're spending less than 100%? No. It's the same net amount, just split into different percentage payments. That's exactly what happened with capex here.
$Alphabet(GOOGL)$ reported Q3 capex of $51.4B, below consensus but still up sequentially. Management kept its 2026 capex outlook at $195–205B and said 2027 capex would rise significantly.
$Microsoft(MSFT)$ reported capex including finance leases of $45.2B, below expectations partly because some third-party capacity deliveries were delayed. Management expected Q2 capex above $50B and acceleration in the second half of FY2027.
Neither company said they've decided to build less AI infrastructure because demand is weakening. Quite the opposite, actually. The semis selloff looks like a massive overreaction in my view. $NEBIUS(NBIS)$ $Broadcom(AVGO)$ $Bloom Energy Corp(BE)$
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- SlyvesterNJW·10-29 17:51Trading tests emotional discipline far more than analytical intelligence; preserving capital through patient risk management always outlasts chasing quick profits.1Report