AI cloud stocks fall as Microsoft and Alphabet cut capital spending below expectations

AI cloud stocks like Fastly, Oracle, and Nebius dropped after Microsoft and Alphabet reported lower-than-expected capital expenditures for AI computing power. Microsoft spent $45.2 billion, missing its $50 billion target, while Alphabet spent $51.36 billion versus a $55.09 billion forecast. These spending cuts raise concerns about revenue growth for AI cloud providers. Oracle’s stock also pulled back after a recent rally, despite strong long-term revenue targets. Investors await updates on whether Microsoft’s delayed capacity will arrive later this fiscal year, which could affect AI cloud providers' revenue ramps.

As of Oct 29, 2026 23:21 WIB, Fastly shares on Pluang fell 5.73% to USD 25.48, trading closer to its 52-week low of USD 7.96 than its high of USD 33.50. Oracle, down 3.32% at USD 139.55, remains well below its 52-week high of USD 275.30, while Nebius dropped 3.19% to USD 176.53, also far from its peak of USD 286.69. Microsoft and Alphabet, the big spenders in AI cloud, saw smaller declines of 1.15% and 12.43% respectively, with Microsoft near its 52-week high and Alphabet closer to its low, reflecting mixed investor sentiment on AI capex news.