Morgan Stanley: AI capital expenditure remains on an upward trajectory, with Meta, Amazon, and Google all seeing comprehensive spending forecast upgrades

BlockBeats reported on July 14 that Morgan Stanley analyst Brian Nowak believes that capital expenditures by large technology companies on artificial intelligence data centers have not yet peaked, and concerns about a slowdown in AI investment may be premature.

The bank raised its capital expenditure forecasts for Amazon, Meta, and Google, expecting AI data center spending by major platforms such as Meta, Amazon, Alphabet, Microsoft, and SpaceX to reach around $1.2 trillion in 2027 and further increase to about $1.4 trillion in 2028.

Morgan Stanley stated that supply chain bottlenecks, increasing demand for computing power, and rising costs of key components are driving hyperscalers to accelerate construction. The bank expects Meta's capital expenditures to potentially reach around $250 billion in 2028, Amazon's to about $318 billion, and Google's capital expenditures could reach approximately $350 billion in 2027. Nowak remains optimistic about the long-term AI investment returns of these companies and maintains a positive rating for Meta and Amazon.