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Google CEO Sundar Pichai gestures during a meeting with France's President Emmanuel Macron on the sidelines of the AI Impact Summit in New Delhi on Feb. 19, 2026. Ludovic Marin | Afp | Getty Images
Wall Street analysts estimate total AI capital expenditures could now climb above $1 trillion in 2027, following even bigger spending plans unveiled by the hyperscalers during Wednesday's tech earnings. Both Evercore and Bank of America placed 2027 capex in excess of a $1 trillion after the earnings calls, with 2026 estimates rising to between $800 and $900 billion. "Cap-ex continues to soar as demand outpaces supply and pricing increases," analysts for Jefferies said in a Thursday note to investors. This year's spending projections were up across the board, with Google parent Alphabet up 4% to $185 billion, Amazon up 1% to $200 billion, Meta up 8% to $135 billion, and Microsoft up a whopping 24% to $190 billion, according to a tally by Bank of America.
Tech CEOs are projecting confidence about their artifical intelligence investments as evidence of monetization, such as ramping cloud revenue, flows through to the latest earnings reports, but the amped spending is still generating skepticism among investors. Amazon CEO Andy Jassy said the company is "confident in the long term capex investments we're making," projecting $200 billion in buildout for the year. First-quarter cloud revenue for Alphabet surged 63% on the year, prompting about a 10% jump in its stock. CFO Anat Ashkenazi said Wednesday that capex plans are increasing to meet "robust demand."
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