ZHESHANG SECURITIES·2025-08-07 07:26Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Insights - The capital expenditure of the four major cloud vendors in North America reached $159.384 billion in H1 2025, reflecting a year-on-year growth of 24.4%, indicating a sustained high level of investment in AI infrastructure [1][10][11] - AI continues to boost the cloud business's growth, with the combined cloud revenue of the three major North American cloud vendors (Microsoft, Google, Amazon) growing by 10.43% year-on-year in H1 2025, slightly up from the previous half [2][25] - Microsoft leads in cloud business growth, with Azure's revenue growth reaching 39% in Q2 2025, while Amazon's AWS shows a slower growth rate of 17.5%, indicating a potential loss of market share [3][27] Summary by Sections Capital Expenditure - In H1 2025, the total capital expenditure of the four major cloud vendors was $159.384 billion, with a year-on-year increase of 24.4% [1][10] - Microsoft is expected to exceed $30 billion in capital expenditure in FY26Q1, showing over 50% growth [13] - Google anticipates a capital expenditure of $85 billion in 2025, reflecting a 61.8% increase [17] - Meta's capital expenditure is projected to be between $66 billion and $72 billion in 2025, with a growth rate exceeding 65% [18] - Amazon's expected capital expenditure for 2025 is $113.1 billion, representing a 45.7% increase [22] Cloud Business Revenue - The cloud business revenue is benefiting from AI demand, with a steady growth rate [25] - In H1 2025, the combined cloud revenue of the three major vendors was $682.78 billion in Q1 and $743.75 billion in Q2, with year-on-year growth rates of 20.3% and 23.1%, respectively [26] - Microsoft’s cloud revenue reached $298.78 billion in Q2 2025, growing by 25.6% [25] - Google Cloud's revenue in Q2 2025 was $136.24 billion, with a growth of 31.7% [26] - Amazon AWS reported $308.73 billion in revenue for Q2 2025, growing by 17.5% [26] AI Impact - AI is driving significant changes in cloud services and related sectors, creating new opportunities [5][31] - Microsoft reported that AI services contributed 16% to its cloud revenue growth in Q1 2025, with Azure's growth accelerating to 39% in Q2 2025 [31] - Google noted a significant increase in AI-related cloud service demand, with training and inference resource consumption increasing eightfold compared to 18 months ago [33] - Amazon's AWS is leveraging its AI capabilities to enhance advertising precision and improve operational efficiency in retail [34] - Meta is integrating AI across its advertising and product ecosystems, enhancing user engagement and ad conversion rates [35]