Why Intel, Nvidia and Others Are Seeing Their Sales to Cloud Giants Soar

As Internet giants spend breathtaking amounts of money to build new data centers and upgrade the hardware within existing ones, some publicly-traded hardware and chip suppliers are seeing the web giants account for a big portion of their total sales. And two big trends -- enterprise adoption of cloud infrastructures and consumer adoption of online video -- are likely to keep cloud-related capital spending growing at a brisk pace. In its Q2 report, #Amazon.com Inc. ( #AMZN) disclosed that its spending on property and equipment acquired under capital leases, much of which is related to Amazon Web Services (#AWS), grew 92% annually to $2.7 billion. #Alphabet Inc./ #Google ( #GOOGL ) , meanwhile, saw its capital spending grow 33% to $2.8 billion

Microsoft Corp. (MSFT)  spent $3.3 billion on capex in its June quarter after factoring capital leases, up from $3.1 billion a year ago. Facebook Inc. (FB) has forecast its capex will rise to around $7 billion in 2017 from $4.5 billion in 2016. And with the caveat that this spending is partly directed towards things like retail stores and manufacturing investments, Apple Inc.  (AAPL) forecasts its fiscal 2017 (ends in September) capex will total $17 billion, up from fiscal 2016's $12.8 billion.
https://www.thestreet.com/story/14280468/1/why-intel-nvidia-and-others-are-seeing-their-sales-to-cloud-giants-soar.html