Microsoft is expanding its AI infrastructure with a focus on global AI systems and linked AI superfactories. The company’s capital expenditure surged to $34.9 billion in the first quarter of fiscal 2026, exceeding projections. Microsoft’s debt-to-cash ratio is over 2:1, necessitating consistent cash flow for expansion without increasing leverage.

Amazon and Google are matching Microsoft’s aggressive AI infrastructure spending. Amazon reported $34.2 billion in third-quarter capital expenditures, with Google raising its 2025 guidance to $91-$93 billion. Both companies are investing heavily in AI infrastructure to maintain competitive positioning in the market.

Microsoft’s stock has grown 4.3% in the past six months, outperforming the industry and sector averages. The company’s forward 12-month Price/Sales ratio is 10.55X, with a Value Score of D. The Zacks Consensus Estimate for fiscal 2026 earnings is $15.59 per share, indicating 14.3% year-over-year growth.

Quantum Computing is emerging as the next technological revolution, with companies like Microsoft, Google, Amazon, Oracle, Meta, and Tesla integrating it into their infrastructure. Senior Stock Strategist Kevin Cook identifies 7 stocks poised to dominate the quantum computing landscape, offering investors a unique opportunity to capitalize on this advancement.

Read more at Nasdaq: Can Microsoft Stock Sustain Its AI Infrastructure Investment Pace?