Overview
- Amazon set 2026 capex at about $200 billion, Alphabet at $175–$185 billion and Meta at $115–$135 billion, while Microsoft did not give a figure as analysts estimate its spending near the $120–$145 billion range.
- Combined outlays bring hyperscaler 2026 capex to roughly $630–$660 billion concentrated on AI compute, data centers, servers, power systems and networking.
- The surge in spending fueled a weeklong tech selloff that erased more than $1 trillion in market value, with Amazon down about 14% for the week and Microsoft and Meta off roughly 8%.
- Nvidia shares climbed about 7% after CEO Jensen Huang said the buildout is justified and sustainable over 7–8 years, lifting chip and hardware names such as Broadcom and Marvell.
- Demand indicators remain strong with large cloud backlogs and supply strains, and analysts say near-term margin pressure may be the cost of a multi-year, demand-driven expansion.