Morgan Stanley: AI Capital Spending Still on the Rise, Meta, Amazon, Google Expenditure Forecasts Significantly Raised

BlockBeats News, July 14th. Morgan Stanley analyst Brian Nowak believes that capital expenditures on artificial intelligence data centers by large tech companies have not yet peaked, and the market's concern about a slowdown in AI investment may be premature.

The bank has raised its capital expenditure forecast for Amazon, Meta, and Google, expecting AI data center spending by major platforms such as Meta, Amazon, Alphabet, Microsoft, and SpaceX to reach around $12 trillion in 2027 and further increase to around $14 trillion in 2028.

Morgan Stanley stated that supply chain bottlenecks, increased computing power demand, and rising costs of key components are driving hyperscalers to accelerate their construction pace. The bank estimates that Meta's capital expenditure in 2028 could reach around $250 billion, Amazon could reach around $318 billion, and Google's capital expenditure in 2027 could reach around $350 billion. Nowak remains bullish on the long-term AI investment returns of the mentioned companies and maintains a positive rating for Meta and Amazon.