"Hyperscalers added $121 billion in new debt in 2025, more than four times the average annual issuance over the prior five years. Doubts even began to surface that Microsoft was having trouble selling AI products , with a report claiming lowered sales growth targets for certain tools, though Microsoft denied that was true. Analysts, though, are still apparently quite bullish on Microsoft, and it may be difficult for anyone to catch them."
"A chart recently emerged on social media showing analysis of annual AI revenue over the past two years. Compiled from Bloomberg data, J.P. Morgan Asset Management's Q3 estimates, and Epoch AI research, the chart tracks AI revenue from several key players. Importantly, it shows Microsoft far out in front of the others. Using Microsoft's earnings commentary on AI contributions to its cloud services unit,"
Microsoft committed tens of billions in capital expenditures and integrated AI across products and services, reporting $88.7 billion in capex for fiscal 2025 with much tied to AI infrastructure. Growing concerns about AI durability and hyperscalers’ rapidly rising debt pressured the stock. Hyperscalers added $121 billion in new debt in 2025, over four times the prior five-year annual average. Reports suggested weaker sales growth targets for certain AI tools, which Microsoft denied. A compiled chart shows Microsoft far ahead in annual AI revenue, with Azure estimated around $18.5 billion and OpenAI near $13 billion.
Read at 24/7 Wall St.
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