STOCKS | Morgan Stanley Says Investors Seem Enthusiastic About Intel's Spending Plans

Morgan Stanley said Intel has raised its total capital expenditure outlook for this year from about $15 billion to $20 billion, and the company expects spending next year to be well above that level. According to Jin10, Morgan Stanley analysts estimated capital expenditure of about $30 billion for fiscal 2027. They said investor enthusiasm for such spending will depend entirely on enthusiasm for the long-term outlook for those investments. Intel will benefit from booming AI technology, which relies on the company's strength in CPUs. Morgan Stanley analysts said the server narrative does support some growth, but profitability from servers alone depends at least in part on maintaining a shortage, because ample CPU supply could lead to some market share loss and lower prices.