Microsoft and Meta adjust AI spending as TSMC reports 41% revenue growth

Microsoft has lowered its calendar 2026 capital expenditure forecast from roughly $190 billion to about $175 billion. Management says the lower figure stems from an accounting shift modifying data center depreciation schedules from 15 years to 25 years and reclassifying assets, rather than a plan to build less infrastructure. Microsoft recorded $41 billion in capital spending for the June quarter and expects more than $50 billion for the September quarter.

Meta has guided 2026 capital expenditures to a range of $130 billion to $145 billion. This is an increase from the $72.2 billion spent in 2025. The company also cut roughly 8,000 jobs in the first half of the year. Goldman Sachs analysts describe these cuts as resource reallocation toward AI growth investments rather than budget cutting.

In the supply chain, TSMC reported third-quarter revenue of $46.72 billion, which is up 41% compared to the previous year. High performance computing, including AI chips, accounted for 68% of those sales. TSMC chairman C.C. Wei says AI demand is extremely robust. The company reiterated a 2026 capital budget of $60 billion to $64 billion and projected fourth-quarter revenue between $52.3 billion and $54.3 billion.

Stijn Van Nieuwerburgh of Columbia Business School estimates that combined 2026 capital expenditures for Microsoft, Amazon, Meta, Oracle, and Alphabet will be about $800 billion. He estimates the aggregate operating cash flow for those companies will be about $707 billion.