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

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.