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CapEx: 11.2bn, 70% YoY, 5% QoQ, expected to increase sequentially, driven by investments in cloud and AI; Increasing cost, expense, and capital investment are aligned with the demand -
Azure revenue up 29% YoY, beat, higher-than-expected AI consumption; 18,000 organizations using Azure OpenAI services, up from 11,000 in July -
Microsoft 365 Copilot general availability on November 1st, already in preview with 40% of the Fortune 100 -
GitHub Copilot has 1 million paid users, copilot users at 37,000 organizations, up 40% QoQ -
PC market unit volumes back to pre-pandemic levels -
Upcoming Ignite conference with over 100 new products and capabilities, introducing new AI-driven features across businesses
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Q3 CapEx $8 billion, 11% YoY, 17% QoQ, muted due to timing of supplier payments; expected to ramp up, mainly in AI and technical infrastructure -
CapEx is expected to increase in Q4 2023; The total aggregate CapEx for 2024 will be higher than the full year 2023. Focus on making AI models more efficient to control the capital intensity -
Google Cloud: miss, started seeing customers looking to optimize spend, but could be stabilizing; revenue at $8.4 billion, up 22% YoY -
Launched 'Bard' and 'Assistant with Bard'; integrates across Google services like Maps, Workspace, YouTube -
DeepMind's Gemini as a key growth driver; Vertex AI projects grew over 7x
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Analog revenue declined 16%, Embedded Processing grew 8% YoY -
QoQ Industrial market down mid-single digits, auto up mid-single digits, personal electronics up about 20% off a low base, communications equipment down upper teens, enterprise systems grew upper single digits -
Inventory continued increase, and factory starts were lowered in Q3 and continue in Q4 -
Pricing not a main concern now, expect low single digit decline, Asia market worth watching -
The demand in the industrial sector, particularly in China, remains weak -
Almost all catalog products are available for immediate shipment
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High design activity in AI, 5G, hyperscale computing, and autonomous driving -
Tripled revenue from AI products like Cerebrus, Verisium, JedAI YoY -
Incorporating AI and LLMs to formalize the front-end of the design process, seen to de-risk schedules and potentially boost design activity -
No significant impact from new regulations/entity lists, China stable -
Expects strong Q4 bookings and backlog increase -
No 2024 outlook; details to be provided in February earnings call