AI cloud stocks dip as Microsoft and Alphabet trim capital spending

Shares of AI-cloud providers slipped on Tuesday following reports that the sector’s two biggest buyers of AI computing power, Microsoft and Alphabet, spent less on capital projects than analysts had forecast. Fastly (NASDAQ:FSLY) traded around $25.43, down about 6%, while Oracle (NYSE:ORCL) fell 3% to roughly $140.57 and Nebius Group (NASDAQ:NBIS) also dropped 3% to $177.56.

Microsoft disclosed $45.2 billion in capital expenditures and finance leases for its first quarter of fiscal 2027, missing the consensus estimate of $50.7 billion and falling short of its own $50 billion target. > "Customer demand continues to exceed available supply," chief financial officer Amy Hood said, adding that some third-party capacity deliveries were delayed and that the company expects to spend more than $50 billion in the next quarter and about $170 billion for the full calendar year.

Alphabet reported $51.36 billion in capital spending, below the $55.09 billion consensus. The shortfall adds pressure on providers such as Nebius and CoreWeave, which supply computing capacity to Microsoft, though Hood did not name any specific supplier.

Oracle’s stock had rallied after its investor-day announcements, which included a forecast of $30 billion in free cash flow by fiscal 2029 and a $20 billion financing cap through fiscal 2030. The company also reaffirmed a $225 billion revenue target for fiscal 2030. Despite the rally, Oracle’s shares remain down 27% year-to-date.

Fastly, an edge-cloud and security platform, has seen its stock rise 150% this year after six consecutive quarters of earnings beats and a recent lift in its 2026 revenue outlook to $732-$746 million. Nebius, a pure-play GPU cloud provider, is up 112% year-to-date, though a small number of customers account for a large share of its revenue.

Analysts note that the timing of Microsoft’s delayed third-party capacity deliveries will be critical for the revenue trajectories of Nebius, CoreWeave and other providers. A smooth rollout could revive growth, while further delays may extend revenue shortfalls. Oracle faces the separate challenge of adhering to its new funding limits while expanding its data-center footprint, and Fastly’s outlook remains tied to AI-driven traffic and security demand rather than hyperscaler budgets.