IT Hardware_ Cloud Capex Tracker_ AMZN Capex Commentary Drives '25 Capex Growth to 32% Y_Y

Summary of Key Points from the Conference Call Industry Overview - Industry: IT Hardware, specifically focusing on Cloud Capital Expenditures (Capex) in North America [1][2][3] Core Insights and Arguments - Capex Growth Forecast: Amazon (AMZN) has provided a guidance for CY25 Capex of approximately $105 billion, leading to an expected Cloud Capex of over$350 billion in 2025, representing a 32% year-over-year (Y/Y) growth, which is 3 percentage points higher than previous forecasts [1][2] - Comparison with Competitors: The guidance from AMZN follows a stronger-than-expected Capex guidance from Alphabet (GOOGL), indicating a robust demand for technology infrastructure, particularly for AI and cloud services [2][3] - Historical Context: The projected 32% Y/Y growth in 2025 is noted to be the second strongest year of Capex growth in over five years, following a record 54% Y/Y growth in CY24 [3] - Investment Trends: Major US hyperscalers are investing heavily to meet the increasing demand for technology infrastructure, particularly in relation to AWS and AI services [2][3] Additional Important Information - Upcoming Earnings Reports: Key upcoming earnings reports from Baidu (February 17), Tencent (February 19), and Alibaba (February 20) are expected to provide further insights into the cloud Capex landscape [4] - Revised Forecasts: Since the beginning of 2024, Cloud Capex forecasts for CY25 have been revised approximately 60% higher, amounting to an increase of $130 billion [10] - **Capex Breakdown by Company**: - Amazon:$105.2 billion (72.4% increase from the beginning of 2024) - Microsoft: $66.3 billion (43.4$75.0 billion (94.4% increase) - Meta Platforms: $61.2 billion (69.2$352.6 billion, a 58.8% increase from the beginning of 2024 [11] Conclusion - The conference call highlights a significant upward trend in cloud Capex driven by major players like Amazon and Alphabet, indicating strong demand for technology infrastructure and AI services. The upcoming earnings reports from other key players will be crucial in assessing the overall market dynamics and potential investment opportunities in the IT hardware sector.