Microsoft spends nearly $35 billion on AI, investors worry about technology "bubble"

Although revenue and profit in the third quarter of 2025 exceeded forecasts, Microsoft's huge spending on AI and cloud infrastructure made investors worry about a technology "bubble", and its stock plunged more than 3%.

Microsoft beat forecasts for both sales and profit in the third quarter of 2025. However, the company surprised investors with the scale of spending on cloud infrastructure and artificial intelligence (AI), sending shares down more than 3% in after-hours trading.

The tech giant said it spent nearly $35 billion in capital expenditures in the third quarter to meet demand for AI and cloud services, with nearly half of that allocated to computer chips and most of the rest related to real estate for data centers.

The spending overshadowed Microsoft's report of 22% quarterly profit growth to $30.8 billion, or $4.13 per share, on revenue of $77.7 billion.

The results exceeded analysts' expectations. According to a survey of analysts by FactSet Research, Microsoft was forecast to earn $3.67 per share on revenue of $75.38 billion.

Of which, revenue from Microsoft's cloud-focused business segment reached $30.9 billion, up 28% year-on-year and slightly higher than analysts' forecasts.

Revenue from Microsoft's office software division, which includes email and word processing tools, rose 17% to $33 billion.

The results come a day after a new deal with OpenAI pushed Microsoft's valuation above $4 trillion for the second time this year, after the first in July.

While no longer the exclusive cloud service provider for OpenAI, Microsoft retains some rights to OpenAI's AI products and models until 2032 and receives approximately 27% of the shares in OpenAI Group PBC (referred to as OpenAI).

This week, alongside Microsoft, Apple also surpassed the $4 trillion market capitalization mark for the first time, while Nvidia continued to conquer the $5 trillion milestone.

These sky-high valuations reflect investor mania surrounding artificial intelligence, a field that some fear could become a “bubble” if AI products fail to be as groundbreaking or profitable as promised./.

(TTXVN/Vietnam+)

Source: https://www.vietnamplus.vn/microsoft-chi-gan-35-ty-usd-cho-ai-nha-dau-tu-lo-bong-bong-cong-nghe-post1074100.vnp