Morgan Stanley says Intel has raised its full-year capital expenditure outlook
to about $20bn from roughly $15bn and expects next-year spending to be
materially higher; MS models roughly $30bn of capex in FY2027. The firm warns
investor enthusiasm depends on confidence in long-term returns from the
investments. Intel should benefit from AI demand that relies on its CPUs,
supporting some server growth, but MS cautions server profitability partly
requires continued supply tightness — abundant CPU supply could trigger share
loss and price pressure.
