Microsoft Capex Doubles to 37% Amid AI Investment

Key Takeaways

• <ul><li>The Federal Reserve raised rates on September 16, 2026, the first hike in three years, adding uncertainty for AI stocks that have gained over 20% in 2026.</li><li>Nvidia, Intel, Microsoft, Google, Palantir, and Anthropic are repeatedly cited as key AI stocks for investors to watch amid policy and rate shifts.</li><li>Microsoft's capex has roughly doubled to about 37% of revenue, compressing free cash flow, though returns on equity sit around 33%.</li><li>HP launched the ZBook Ultra G3a and ZGX Fury AI infrastructure, projecting US$58.3b revenue and US$2.7b earnings by 2029.</li><li>An AI slowdown may benefit the robotics industry, since running and training AI still requires data centers and compute.</li><li>The International Energy Agency projects global data center electricity use will rise from 485 terawatt-hours in 2025 to 950 terawatt-hours in 2030.</li><li>US defense AI spending is getting a political tailwind, with AeroVironment, Ouster, and Sanmina positioned to benefit.</li><li>Cybersecurity stocks like Palo Alto Networks and CrowdStrike are expanding protections for AI agents as companies deploy more autonomous tools.</li><li>DrayTek and Enea partnered to help businesses detect AI traffic and threats on their networks using Enea's Qosmos technology.</li><li>Anthropic's IPO plans face investor skepticism, and researcher Jacob Coxon resigned from Anthropic calling for a development slowdown.</li></ul>

3 AI Infrastructure Stocks to Watch After Nvidia Policy Signals

AI chips and data centers are now central to US politics, with Nvidia and Jensen Huang influencing regulation and China access. This article highlights three AI infrastructure stocks including Analog Devices, which makes power and signal chips for AI servers with a market cap of US$182.1b, Intel, which designs CPUs and data center platforms with a market cap of US$570.6b, and Keysight Technologies, which provides test tools for high speed chips and data center networks with a market cap of US$57b. Policy shifts could quickly change how capital flows into these companies.

Shearwater Group and 2 Other British AI Stocks to Watch

New US and China talks on AI rules and critical minerals have put artificial intelligence on the policy table. This article highlights three UK listed AI stocks including Shearwater Group, which provides AI driven cyber security services with a market cap of £13 million, Bytes Technology Group, which supplies AI ready cloud infrastructure to enterprise customers with a market cap of £1.06b, and Satsuma Technology, which builds AI agents and subnet infrastructure with a market cap of £23 million. These stocks may be overlooked by the market despite strong AI exposure.

3 Financial Stocks Tied to the AI Data Center Funding Boom

AI data centers are now funded through credit guarantees and residual value promises, creating new opportunities in financial stocks. This article highlights three companies including eGuarantee, which runs credit guarantee services in Japan with a market cap of ¥79.5 billion, Federal Home Loan Mortgage, which bundles home loans into securities with a market cap of US$15.2b, and ICG, a London based alternative asset manager with a market cap of £5.1 billion. These firms channel money into infrastructure financing similar to how Big Tech funds data centers.

Cresco Heads 3 Japanese Undervalued AI Stocks to Watch

Big Tech is investing hundreds of billions in guarantees to expand AI data centers and chip capacity. This article highlights three undervalued Japan based AI stocks including Cresco, an IT services provider with a market cap of ¥73.6 billion, Systena, an IT services group with a market cap of ¥157.3 billion, and WingArc1st, which develops AI powered document management software with a market cap of ¥115.4 billion. All three companies have AI exposure but may be undervalued by the market at this time.

3 US AI Defense Stocks Retail Investors Are Watching

Donald Trump has promised to push for AI growth and an AI Force, creating a political tailwind for government technology spending. This article highlights three US AI focused defense contractors including AeroVironment, which develops AI enabled drones and loitering munitions with a market cap of US$8.3b, Ouster, which builds lidar sensors for defense and robotics with a market cap of US$2.5b, and Sanmina, which manufactures hardware for defense and cloud customers with a market cap of US$10.5b. These companies are positioned to benefit from increased AI defense spending.

3 US AI Infrastructure Stocks to Watch Amid Policy Shift

Ichor Holdings makes fluid delivery parts used in chipmaking for AI data centers and has a market cap of US$2.1b. Cohu builds semiconductor test equipment and AI analytics software with a market cap of US$2.7b. Penguin Solutions designs high performance computing and AI infrastructure with a market cap of US$2.7b. All three could benefit from a looser regulatory tone around AI and data infrastructure.

5 Cybersecurity Stocks to Consider as AI Security Needs Grow

The article says more AI agents in companies create more security risks around identity, permissions, and access. Palo Alto Networks bought CyberArk in February to strengthen identity security for people and AI agents. CrowdStrike protects endpoints and is expanding protections for autonomous AI agents. The article highlights five cybersecurity stocks as ways to invest in AI safety without predicting the next AI breakthrough.

AI Slowdown Could Help Robotics Industry Grow

Some big AI leaders called for slowing frontier AI development, which shook AI stocks. Luke Lango reported that Microsoft and Nvidia are still spending heavily on AI infrastructure. He says the slowdown mainly affects frontier model training, while running AI, testing it, and training robots still need data centers and compute. He believes robotics could be a major beneficiary of AI's next phase.

TSX Power Stocks May Benefit From AI Data Center Growth

The International Energy Agency projects global data center electricity use will rise from 485 terawatt-hours in 2025 to 950 terawatt-hours in 2030. Brookfield Renewable owns hydroelectric, wind, solar, and storage assets and reported Q2 2026 FFO of US$421 million. Enbridge has natural gas transmission infrastructure and reported Q2 adjusted EBITDA of about $4.78 billion with a secured project backlog of $41 billion. Both stocks offer exposure to power demand tied to data centers.

3 AI Stocks to Consider Before the Next Fed Rate Decision

The article recommends NVIDIA, Alphabet, and Palantir as AI stocks that may stay resilient even if interest rates remain high. NVIDIA provides GPUs and high performance computing solutions. Alphabet owns Google and uses AI as a key growth driver. Palantir offers AI-powered data analytics for governments and enterprises. The article says all three have strong performance records and are well positioned for growing AI demand.

DrayTek and Enea Partner to Tackle AI Traffic Visibility

DrayTek and Enea are working together to help businesses see AI traffic on their networks. Enea's Qosmos ixEngine will be added to DrayTek's next-generation platforms to identify applications and detect threats. The technology can spot different types of AI traffic and malicious activity. DrayTek also plans to use Enea's Qosmos Threat Detection SDK in a new cybersecurity platform. The partnership aims to strengthen cybersecurity as AI threats grow more complex.

Investors Watch Rates and AI Slowdown After Fed Rate Hike

US stock investors are paying close attention to interest rates and AI development after the Federal Reserve raised rates for the first time in three years. The Fed's September 16, 2026 hike was widely expected but leaves uncertainty about future increases. Stocks rose on September 24 as oil prices and Treasury yields fell. The tech sector, which makes up 38% of the S&P 500, has gained over 20% in 2026 but lost ground since June. Industry leaders have called for slowing AI advancement, adding to market concerns.

Utah Lawmakers Prepare to Address AI Challenges on Capitol Hill

Rep. Blake Moore (R-UT) has been named a vice chair of a bipartisan congressional working group on artificial intelligence. Sen. John Curtis (R-UT) and Sen. Lisa Blunt Rochester (D-DE) are calling for immediate congressional hearings on AI regulation. The push comes after reports of hackers provoking AI models and researcher Jacob Coxon resigning from Anthropic while calling for a development slowdown. A study by Go Humanize AI found AI extinction-related searches increased by 5000 percent since August. The White House opposes efforts to limit AI research, with President Trump saying the US leads China in the AI race.

Is Microsoft Overvalued as AI Spending and Copilot Demand Grow?

Microsoft's stock has risen 34.42% over 90 days but its 1-year return is down 3.88% as investors weigh AI spending risks. The company last closed at $493.78 while its fair value reference point is $419.91. Microsoft's capital expenditure has roughly doubled to about 37% of revenue as it builds AI infrastructure, compressing free cash flow in the near term. However, returns on equity sit around 33% and the balance sheet is effectively net cash. Analysts describe Microsoft as fairly valued and edging attractive for long-term investors.

What Investors Should Know About Anthropic IPO ETF Options

Investors have limited options to gain exposure to Anthropic's stock until the company goes public. Anthropic has drawn attention for its AI research and development but its IPO plans have met skepticism from some investors. A financial analyst warned that the IPO market is highly uncertain and advised investors to be cautious. Readers are encouraged to do their own research before making any investment decisions related to an Anthropic IPO ETF.

HP bets on AI workstations to lift profit margins

HP launched the ZBook Ultra G3a mobile workstation and ZGX Fury AI infrastructure to run large AI workloads locally. Partnerships with Red Hat and Perplexity support HP's push toward premium AI focused systems instead of basic PCs. Analysts expect HP revenue to stay flat over the next three years, so the AI push is a mix and margin story. Profit margins may rise from 4.4% today to 4.6% in about three years. HP plans to reduce its share count by about 2.16% a year through buybacks. The company projects US$58.3b revenue and US$2.7b earnings by 2029.

Sources

• 3 AI Infrastructure Stocks Investors Are Watching After Nvidia Policy Signals
• Shearwater Group And 2 Other British AI Stocks To Watch
• 3 Financial Stocks Tied To The Hidden AI Data Center Funding Boom
• Cresco Heads 3 Japanese Undervalued AI Stocks To Watch
• 3 US AI Defense Stocks Retail Investors Are Watching Right Now
• 3 US AI Infrastructure Stocks Worth Watching As Policy Shifts Capital
• The AI Security Playbook: 5 Cybersecurity Stocks to Buy Now
• How an AI Slowdown Could Spark a Robotics Boom
• AI’s Biggest Bottleneck Isn’t Chips: These TSX Stocks Could Power the Next Boom
• 3 AI Stocks to Buy Before the Next Fed Rate Decision
• DrayTek and Enea Target Growing AI Traffic Visibility Challenge
• AI and Its Impact on Stock Market Trends
• Utah lawmakers on both sides of Capitol Hill prepare to meet artificial intelligence challenge
• Is Microsoft (MSFT) Overvalued As AI Spending And Copilot Demand Build?
• Should You Invest in an Anthropic IPO ETF? What Investors Need to Know Right Now.
• How AI PC Demand At HP (HPQ) Has Changed Its Investment Story