Overview
- Amazon guided to $200 billion in 2026 capex, Alphabet to $175–$185 billion, Meta to $115–$135 billion, and Microsoft is on pace for roughly $145 billion, taking combined outlays to about $650–$700 billion.
- Tech stocks sold off sharply this week with roughly $1 trillion in market value erased, as Amazon’s guidance heightened worries about the timing of AI payoffs.
- Nvidia CEO Jensen Huang called the investment wave justified and sustainable on CNBC, and Nvidia shares rose about 7–8% as chip and infrastructure suppliers rallied.
- Analysts warn of steep free‑cash‑flow hits and possible equity or debt raises; Amazon told the SEC it may tap capital markets, and forecasts point to major FCF declines at Alphabet, Meta, and Microsoft.
- The scale rivals the annual GDP of countries like Sweden or Israel and even exceeds last year’s total cloud infrastructure revenue, highlighting the magnitude of the AI data‑center buildout.