Just under ~$1T/year, at this rate (and assuming no further acceleration) Hyperscaler quarterly capex https://t.co/ytRhbjCa0x
Microsoft added ~$56 billion in new Capital Expenditures over the last 12 months. That's 3x more than any other year in their history. What impact will this have on margins in the long run? $MSFT https://t.co/4T8YTMkPon
Big-4 Tech capex has reached all-time highs https://t.co/gI7WRip39F
In 2024, datacenter spending by large tech firms is projected to reach a minimum of $330 billion, according to estimates from Grok. Notably, 42% of this spending, approximately $139 billion, is expected to be allocated to NVIDIA, as indicated by CoreWeave's ramp-up. Additionally, NVIDIA's revenue forecasts show a significant increase, with projected revenues of $60.9 billion in 2024 and $130.5 billion in 2025. Meanwhile, capital expenditures (capex) among the Big-4 tech companies have reached all-time highs, with Microsoft reporting an increase of approximately $56 billion in new capital expenditures over the past year, marking a threefold rise compared to any previous year. This surge in spending raises questions about the long-term impact on profit margins. Hyperscaler quarterly capex is estimated to approach $1 trillion annually if current trends continue without further acceleration.
