Microsoft and Meta's quarterly reports addressed the market's key concerns: spending on computing power and demand for AI are both very strong!

According to Zhuifeng Trading Desk, JPMorgan analyst Harlan Sur’s interpretation of the latest financial reports from Microsoft and Meta indicates that spending intensity on AI infrastructure has clearly entered a new round of expansion. Both tech giants noted in their latest reports that **tight AI computing power supply will persist through 2026. Their fourth-quarter capital expenditures exceeded market expectations**: Microsoft at $37.5 billion, Meta at $22.137 billion. Additionally, Meta raised its full-year 2026 capital expenditure forecast to $125 billion, an increase of 73% year-on-year. This shows that **driven by the accelerated deployment of foundational models, AI agents, and commercialization, demand for computing power continues to outpace supply, prompting continued investment from cloud and hyperscale firms**. JPMorgan believes that under the current supply-demand structure, major tech companies still have room to raise capital expenditures, with investments focused on data centers, servers, and network infrastructure, thereby driving performance in related semiconductor supply chains. This investment trend is expected to continue through 2027. **Supply Limits Become the Norm: Demand Gap Will Persist** Supply constraints have become the core bottleneck in current AI infrastructure construction. Both Microsoft and Meta pointed out in their latest earnings calls that demand for computing power continues to surpass supply. The structural reason for supply-demand imbalance is the accelerated deployment of foundational models, AI agents, and commercialization, driving exponential growth in computing intensity. Meta revealed that its GPU cluster for training generative advertising models has now doubled in size and is being further expanded to support training for the next-generation GEM model in 2026. This sustained tight supply is expected to continue supporting high-intensity investment in data centers, servers, and network infrastructure from 2026 to 2027. Custom Chip Development Becomes Strategic Focus In addition to continued purchases of AMD and Nvidia GPUs, **Microsoft and Meta are rapidly advancing custom ASIC chip strategies to improve energy efficiency and expand application scenarios.** On Meta's side, its self-developed chip project MTIA continues to iterate, currently supporting retrieval engine inference, and plans to expand to core ranking, recommendation training, and inference workloads in Q1 2026. JPMorgan notes that **Meta’s chip design partner Broadcom will benefit from this, with Meta-related revenue expected to surge significantly in 2026.** Microsoft is focusing on optimizing the energy efficiency and cost of token processing, emphasizing the key role of custom chips. According to JPMorgan analysis, **although Marvell Technology did not participate in Microsoft’s previously announced MAIA 200 chip, it is moving forward as planned with the next-generation MAIA 300 chip, which is expected to enter mass production in the second half of 2026.** As model scale and complexity increase, demand for computing power grows exponentially. Capital expenditure guidance from cloud giants continues to focus on AI infrastructure investment. **The latest plans from Meta and Microsoft further confirm JPMorgan's view: investments in networks, custom chips (ASICs), and GPU-related accelerators for computing and storage will maintain strong momentum in the mid to long term.** ~~~~~~~~~~~~~~~~~~~~~~~~ The above highlights are from [Zhuifeng Trading Desk](https://mp.weixin.qq.com/s/uua05g5qk-N2J7h91pyqxQ). For more detailed interpretations, including real-time commentary and frontline research, please join [Zhuifeng Trading Desk ▪ Annual Membership](https://wallstreetcn.com/shop/item/1000309). Risk Warning and Disclaimer The market has risks; investment must be cautious. This article does not constitute personal investment advice and does not take into account individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their particular circumstances. Any investment based on this is at your own risk.