TLDR
- Microsoft’s Q2 capital spending hit $37.5 billion with two-thirds going to AI chips, beating Wall Street estimates
- Meta Platforms plans up to $135 billion in 2026 capex, 20% above expectations and double last year’s spending
- Both Microsoft and Meta report AI computing demand exceeds their current supply capacity
- China approved sales of Nvidia’s H200 chips to ByteDance, Alibaba, and Tencent after restrictions
- ASML and SK Hynix posted strong earnings, with ASML’s orders and 2026 sales forecast beating estimates
Nvidia shares closed at their highest level since early November on Wednesday. The stock fell 0.7% in after-hours trading but remains near the top of its recent trading range.
The chip maker is getting a boost from major tech companies announcing large AI infrastructure investments. Microsoft and Meta Platforms both revealed spending plans that exceeded Wall Street’s expectations.
Microsoft reported capital expenditures of $37.5 billion for its fiscal second quarter. The figure topped the consensus estimate of $36.7 billion. About two-thirds of that spending went toward chips.
The company’s CFO Amy Hood told investors that limited AI hardware availability is still slowing cloud computing growth. Microsoft flagged its own Maia 200 AI chip but confirmed continued purchases from Nvidia and AMD.
“We want to make sure we’re not locked into any one thing,” Microsoft CEO Satya Nadella said on an analyst call. He emphasized partnerships with both Nvidia and AMD as all three companies continue innovating.
Meta Doubles Down on AI Infrastructure
Meta Platforms announced even bigger spending plans. The Facebook parent said 2026 capital expenditures could reach $135 billion. That’s 20% higher than Wall Street expected and nearly double last year’s investment.
CFO Susan Li explained the company faces a supply crunch. “Demands for compute resources across the company have increased even faster than our supply,” she told analysts.
Meta expects to add capacity throughout 2026. But Li warned the company will likely remain constrained for much of the year. Additional capacity from Meta’s own facilities won’t come online until later in 2026.
China Approves H200 Sales
Nvidia received positive news from China on Wednesday. Reuters reported that Chinese regulators approved domestic tech giants to purchase Nvidia’s H200 system.
ByteDance, Alibaba, and Tencent received authorization to buy the chips. The development marks a shift after China had been pushing companies to choose domestic alternatives.
The U.S. had authorized H200 sales to China earlier this year. But regulatory uncertainty remained until this week’s approval. Nvidia previously said export restrictions to China cost it $8 billion in lost sales in May.
Chip Sector Shows Strength
Other semiconductor companies posted strong results Wednesday. Dutch chipmaker ASML reported fourth-quarter earnings that beat expectations. The company’s orders exceeded analyst forecasts. Its 2026 sales outlook also came in ahead of estimates.
ASML shares rose 5% in morning trading before finishing down 1.9%. Other European chip firms including Infineon and STMicro traded higher.
South Korea’s SK Hynix closed up more than 5% after reporting record full-year profit for 2025. The VanEck Semiconductor ETF gained 1.9% on the day.
Nvidia shares rose around 1.6% in premarket trading Wednesday. The moves reflect growing investor confidence in AI chip demand as major tech companies race to expand computing capacity.
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