Bank of America projects Microsoft will be the only major cloud infrastructure provider, or hyperscaler, to maintain positive free cash flow over the next year. The forecast comes as technology companies ramp up capital spending to build artificial intelligence infrastructure.
Bank of America expects Amazon, Alphabet, Meta and Oracle to post negative free cash flow in 2027 as AI spending increases. Microsoft’s capital expenditures are projected to reach $175 billion to $190 billion this year.
The report says Microsoft’s disciplined spending and diversified revenue streams are expected to help shield it from the cash-flow pressures facing its peers.