Microsoft Reframes $190B Capex as AI Demand Surges Past Capacity

Microsoft's fiscal Q3 revenue hit $82.9B (+18% YoY), with Azure/cloud growth nearing 40% and AI run-rate at $37B (+123% YoY), as executives stress demand exceeds supply despite $190B 2026 capex plans. Shares, down ~25% YTD amid AI skepticism and Copilot adoption concerns, rallied on eased OpenAI tensions (April 27) and Michael Burry's stake (April 28), with analysts like Morningstar targeting $600 (38% upside). Recent commentary shifts focus from capex fears to bullish AI dominance, positioning MSFT for recovery versus rivals like Amazon.