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Microsoft (NASDAQ:MSFT) has addressed a report from TD Cowen, affirming that its ambitious $80 billion investment in infrastructure is proceeding as planned, despite assertions regarding potential cancellations of certain data center leases.
The company’s spokesperson emphasized that while some strategic pivots may surface, there is a steadfast commitment to growth across all regions and the overarching infrastructure investment target for the fiscal year remains intact. The investigation by TD Cowen, released last Friday, indicated that Microsoft could have withdrawn from leasing agreements for a few hundred megawatts with two private data center operators, raising questions about its infrastructure commitments.
Additionally, the report highlighted a reduction in the transition from statements of qualifications to finalized leases, alongside a notable shift of some international expenditures to domestic operations in the U.S. This move could signify a possible oversupply in the current infrastructure landscape. Notwithstanding these developments, Microsoft emphasizes that its trajectory for growth and enhancement, particularly in cloud computing and artificial intelligence (AI), remains a primary focus.
This information was first reported by GuruFocus.
Source
finance.yahoo.com