Overview
- Jefferies pegs 2026 capex by Microsoft, Amazon, Alphabet and Meta at about $620 billion, with company disclosures pointing to Amazon at $200 billion, Alphabet at $175–185 billion and Meta at $115–135 billion.
- Amazon logged nine straight daily declines and lost about 18% in value, erasing roughly $463 billion, after guiding to $200 billion of 2026 spending focused on data centers and AI chips.
- Nvidia shares have stayed range‑bound despite the spending surge, with valuation multiples compressed and investors awaiting guidance at the Feb. 25 earnings report.
- Suppliers show clearer near‑term traction, with TSMC lifting its 2026 capex plan to about $54 billion and Lumentum reporting strong growth, a $400‑million‑plus backlog and new co‑packaged optics contracts.
- Analysts highlight a shift toward in‑house AI processors such as Google TPUs and AWS Trainium/Inferentia and flag rising financing needs as capex intensity climbs, including potential debt issuance signaled by Amazon.