Overview
- Amazon set 2026 capital spending at about $200 billion, Alphabet guided to $175–$185 billion, Meta to $115–$135 billion, and analysts peg Microsoft near $114–$120 billion, taking the hyperscalers’ total to roughly $630–$660 billion.
- Nvidia rose about 7% after CEO Jensen Huang called the AI data center buildout sustainable for seven to eight years and described demand as sky high, lifting other chip and infrastructure stocks.
- A broad tech selloff this week erased more than $1 trillion in market value, with Amazon, Microsoft, Meta, and Alphabet shares falling as investors questioned near-term returns on the expanded spending.
- Analysts trimmed some price targets but largely argued the investments are supported by strong cloud demand and large backlogs, with the big three reporting roughly $1.1 trillion in remaining performance obligations.
- The spending is concentrated on physical AI infrastructure such as data centers, servers, and power systems, contributing to component shortages and boosting specialist providers like CoreWeave.