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Microsoft Capex Surges Past Free Cash Flow Sparking AI Return Concerns

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The Story

News Summary

  • Microsoft faces heightened scrutiny as quarterly capital spending surged to $41 billion, outstripping free cash flow by 2.1 times.
  • Despite shares trading below fair value estimates, investors demand clear proof that massive AI infrastructure spending can deliver sustainable, profitable returns amid power bottlenecks and chip obsolescence risks.
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MSFT price history

495.63 +5.23% over the displayed period

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