Overview
- Analysts on Thursday raised forecasts for hyperscaler spending to more than $1 trillion in 2027, with 2026 estimates now around $800 billion to $900 billion and Bank of America tallying this year’s plans at roughly $185 billion for Alphabet, $200 billion for Amazon, $190 billion for Microsoft, and $135 billion for Meta.
- Google Cloud posted $20 billion in quarterly revenue, up 63%, with operating margin at 32.9% and a backlog near $460 billion that the company says will convert a little over half into revenue within 24 months.
- Meta shares fell about 9% after it lifted 2026 capital spending to $125 billion to $145 billion on higher component costs and added data center buildouts, and CNBC noted free cash flow slid to $1.2 billion from $26 billion a year earlier.
- Intel delivered a blowout first quarter as Data Center and AI revenue rose 22% to about $5.1 billion, and management highlighted improving manufacturing yields and stronger CPU demand as AI systems rely on CPUs to manage data flows and tasks.
- Chip and hardware makers from Nvidia and AMD to Micron stand to benefit from multi‑year orders for GPUs, servers, and memory, though analysts flagged supply bottlenecks, rising component prices, and the risk of overbuild even as Google Cloud’s chief said demand will outstrip supply for years.