Microsoft's 2026 Capital Expenditure Exceeds Expectations, Memory Prices Raise Concerns

Microsoft's capital expenditure exceeding expectations indicates strong growth and investment appetite. However, concerns over memory prices could pressure profit margins in the short term, particularly by potentially increasing cloud and data center costs. Technically, the RSI is at 46 in neutral territory, while the MACD remains below the signal line. Although the price is trading below the 20-day moving average, it holds above the 50-day average. Therefore, it is difficult to determine a clear direction in the short term, and the market may be expected to digest the news and await clearer signals regarding memory prices.

MU shares have surged sharply by 16.2% in the last 24 hours, with the RSI reaching 77, entering overbought territory. News headlines indicate that Microsoft's capital expenditures exceeding expectations could positively impact memory demand, though concerns over memory prices persist. Technically, MU is trading well above its 20- and 50-day moving averages, and while the MACD remains in positive territory, overbought signals increase the risk of a short-term correction. Therefore, given the near-term directional uncertainty, a neutral stance appears more appropriate.

While the news headline emphasizes Microsoft's robust capital expenditure, it also includes concerns regarding memory prices. NVDA's technical indicators are quite strong: an 8.9% daily gain, RSI at 68, and MACD above the signal line support short-term upward momentum. The price being above the 20- and 50-day moving averages is also positive. However, uncertainty in memory prices and the RSI approaching overbought territory suggest that the rally may be limited. Therefore, I expect a cautious uptrend.