Microsoft Vs. Alphabet: The Enterprise Fight No One Saw Coming

High-grade debt issuance surged to $57 billion in the first two days of September, potentially leading to a fourth consecutive monthly record. September's supply could exceed $200 billion, surpassing last year's $189 billion. Key deals include GlaxoSmithKline's $6.5 billion offering and UBS's $6 billion print. AI debt spreads remain tight, but yields have risen. M&A-related debt issuance increased to 20% in August, the highest since May.

Microsoft plans to expand its data center capacity from 12 GW to 38 GW by 2032, aiming to address capacity shortages that have led to lost clients and service restrictions. The expansion, the largest in the company's history, faces political and physical constraints, including grid interconnection delays and community opposition. Microsoft's capital expenditures reached $145 billion in fiscal year 2026, with additional lease commitments totaling $329 billion. The company has also extended the es

Greg Abel, successor to Warren Buffett, now oversees Berkshire Hathaway's $360 billion portfolio, with 82% concentrated in 10 stocks. Apple, American Express, and Alphabet are top holdings. Abel has added tech stocks and maintained financial stocks as key investments. Buffett's 'indefinite' holdings, like Coca-Cola, remain.

Alphabet (GOOGL) stock has underperformed recently, but its TPU chip sales to customer data centers, started in Q2 2026, may offer upside. Cloud backlog grew to $514B, with $260B expected as revenue in 24 months. Cloud revenue grew 82% YoY to $24.8B, driving segment operating income to triple YoY. Management plans to increase third-party capacity, potentially pressuring margins and free cash flow, with 2026 capex guidance raised to $195B-$205B.

Microsoft may expand its data-center capacity to 38 gigawatts by 2032, over three times its current 12 gigawatts, with AI-focused infrastructure accounting for about one-third, according to Bloomberg. The company is also considering longer lease periods to spread costs. Microsoft expects capital expenditure to reach $50 billion by Q1 FY2027 and $175 billion for 2026.

Microsoft plans to expand its data center capacity to 38 gigawatts by 2032, up from 12 gigawatts, to meet AI and cloud demand. The company reported Q2 2026 net income of $38.46 billion and revenue of $81.27 billion, with capital expenditure reaching $175 billion. MSFT shares closed at $490.04 on 10 September 2026, down 0.74% on the day.