JPMorgan says memory cost pressures are changing the pace of PC customer purchases. Meanwhile, cloud customers’ demand for server CPUs is strong, but component mismatches could lead to inventory adjustments in the second half of 2027.
Both companies’ third-quarter capital spending fell short of expectations, but their full-year plans still point to higher fourth-quarter spending. JPMorgan is optimistic about the server supply chain while wary of pressure from PC demand and inventories.
650 Group is optimistic about connections within clusters, links between data centers and CPU demand from AI agents. But server price increases currently stem mainly from cost pass-through, while equipment vendors also face intensifying competition.
Meta’s third-quarter cash capital spending fell short of consensus, but the company raised the lower end of its full-year spending guidance. J.P. Morgan is optimistic about year-end server supply-chain revenue and believes CPU demand from Muse adds a source of growth for general-purpose servers.
