Microsoft not easing up on capex spending in ‘any material way,’ says BofA

BofA notes that The Information first reported last Friday that OpenAI is planning to shift some spending on GPU compute from Microsoft (MSFT) Azure to the Stargate partnership with Oracle (ORCL) and Softbank (SFTBY) over the next few years, after which a separate report cited channel checks that Microsoft had cancelled leases in the U.S. with at least two data centers operators and has re-allocated a considerable portion of its international spending to the U.S. Then, CNBC yesterday published an emailed statement from a Microsoft spokesman that indicates that although the company may strategically adjust infrastructure investments in some areas, the greater than $80B capital expenditures plan for FY25 remains unchanged. The firm, which thinks that Microsoft may decide to reallocate some spending and projects, contends that the company is “not easing up on capex spending plans in any material way,” and it keeps a Buy rating and $510 price target on Microsoft shares.