By Alex Sirois
Publication Date: 2026-11-05 12:15:00
Microsoft sells AI capacity years before it exists, then pays for the build with its own cash. One investor keeps buying despite a $170 billion spending plan, and explains why Amazon and Oracle never earn his money.
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Each time I have new cash to invest, I add to Microsoft (NASDAQ:MSFT | MSFT Price Prediction). After the October earnings report, I bought again at $555.80, and I expect to keep buying.
Why I Keep Hitting the Buy Button
Microsoft sells AI and cloud capacity years before it delivers it. Then it pays for the build with its own cash flow. Commercial remaining performance obligation (RPO) is revenue customers have signed for but Microsoft has not yet booked. It rose 73% to $677B. The part of that backlog due after the next 12 months grew 98%. On the call, CFO Amy Hood said, “Customer demand continues to exceed available supply.”…