AI boom: Big Tech capital expenditures now seen topping $1 trillion in 2027
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- Alphabet expects AI‑related capex of $185 bn in 2027, up 4% from prior forecasts, as its cloud revenue surged 63% YoY.
- Amazon CEO Andy Jassy touts confidence in a $200 bn AI build‑out for the year, aligning with a 1% capex increase to $200 bn for 2027.
- Microsoft lifts AI capex forecast 24% to $190 bn for 2027, the biggest jump among the hyperscalers, per Bank of America tally.
- Meta plans to double its capex from $72 bn in 2025 to $125‑145 bn in 2026, yet its shares slipped ~8% as investors demand clearer ROI.
- Bank of America analysts now forecast total AI capex exceeding $1 trillion in 2027, up from $800‑$900 bn projected for 2026.
Why it matters: Investors in Alphabet and Microsoft benefit from a projected $2 trillion AI backlog and rising cloud revenue, while Meta’s shareholders risk further dilution as its capex hikes lag ROI, pressuring stock performance.
