In NVIDIA's 23Q4 earnings report, large cloud providers accounted for more than half of the data center revenue, and consumer internet companies were one of the largest customer categories.

This week, Meta, Microsoft, and Google released their earnings reports, all announcing aggressive capital expenditure plans, which boosted the AI sector. This article will summarize the capital expenditures of the three giants and the predictions from investment banks.

Meta

24Q1 capital expenditure was $6.4 billion: down 6% YoY and 16% QoQ. Although Zuckerberg talked big, Meta was actually very cautious with capital expenditures this quarter. Expected 2024 capital expenditure will be between $35 billion and $40 billion, up from the previous forecast of $30 billion to $37 billion, far exceeding market expectations. The company also expects capital expenditures to increase in 2025.

Based on the full-year 2024 guidance of $35-40 billion, the average for the remaining three quarters of 2024 will exceed $10 billion each, a significant increase.

Google

24Q1 capital expenditure was $12 billion: up 91% YoY and 9% QoQ.
 It is expected that the next three quarters will remain roughly the same or slightly higher than this quarter's $12 billion, with no guidance given for 2025 capital expenditures.

Microsoft

24Q1 capital expenditure was $14 billion: up 79.4% YoY and 21.7% QoQ.
 24Q2 capital expenditures are expected to increase significantly by 50%-70% QoQ, and capital expenditures for fiscal year 2025 will continue to rise.

Summary

(1) After the earnings reports from Google, Microsoft, and Meta, AI chip stocks NVDA, AMD, and TSM surged.
 

(2) Bank of America raised its 2024 global cloud computing capital expenditure forecast: fiscal year 2024 global cloud computing capital expenditure is expected to be around $220 billion, up approximately 35% YoY, higher than the previous forecast of $205 billion.

$NVIDIA(NVDA.US)