Key facts: Microsoft $25B bond sale; 10 tranches; Q1 capex $45.2B

Amazon and Intel reported earnings showing increased AI-related spending, with Amazon forecasting lower holiday-quarter sales. Big Tech's cash flows are strained, with Alphabet and Meta burning cash. Intel announced a factory shutdown and $600M revenue loss. Shares of tech and semiconductor companies dropped after hours.

Microsoft issued $25B in senior unsecured debt across ten tranches. Proceeds will fund capital expenditures, stock buybacks, and general corporate purposes, according to the company.

Amazon's Q3 capital expenditure hit $77.3B, exceeding expectations by $20B, and reported a $7.6B cash burn. Tesla's capex surged 88% to $4.7B, but it lowered its annual forecast. Microsoft also reduced its spending target. Amazon and Alphabet maintained their full-year forecasts. Investors worry about Big Tech's AI spending and its returns.

Microsoft reported a 48% surge in Azure revenue to $33.165B, total revenue up 19% to $92.28B, and adjusted EPS of $4.89, exceeding expectations. CAPEX was $45.2B, below forecast. Microsoft shares rose 5% in after-hours trading. The company expects 49-50% Azure growth and $96B-$97.1B total revenue in Q2, outperforming analyst forecasts.

Alphabet's 12.64% drop due to missed revenue estimates dragged Nasdaq and Nikkei lower. A $6.3B Binance hack pressured Bitcoin toward $77,000. Treasury yields fell, but broader market panic was not evident. Key levels: Nasdaq 25,802.96, Nikkei 61,462.61, Bitcoin $75,000–$76,000.

Big Tech companies like Alphabet, Amazon, Microsoft, and Meta are investing heavily in AI (US$750B by 2026) while their core businesses slow. Alphabet's ad sales grew at the slowest pace in 5 quarters, and Amazon's e-commerce and ad growth slowed. Despite this, they maintained high capital spending outlooks. Shares fell, with Alphabet losing US$500B in market value. Cloud computing was a bright spot for both Amazon and Google, but AI integration is hurting Google Search's profitability.