Google, Amazon, Meta, & Microsoft will spend 'unprecedent' $1T on AI capex in 2027: Analyst
Yahoo Finance ·
Google, Amazon, Meta, & Microsoft will spend 'unprecedent' $1T on AI capex in 2027: Analyst Yahoo Finance Video and Julie Hyman Thu, July 23, 2026 at 12:08 PM EDT Evercore ISI senior managing director and head of internet research, Mark Mahaney, discusses Alphabet's ( GOOG , GOOGL ) recent earnings results and his outlook for AI capex spending. What do you think is going on today? Is it that people are upset about how much Alphabet's spending? I think that's largely it. People would rather invest in the the the companies and the stocks that are receiving the investment dollars rather than spending the investment dollars. When is spending good and when is spending bad? Because there was a moment in this cycle when all of these hyperscalers were coming out with these eye-popping numbers and the stocks were going up. I mean, the magnitude's become clearer into this year, and the numbers keep going up. And so, I think there's a little bit of a tell in there. like the day that CAPEX numbers hold, uh and they stop going up and maybe they start going down. It's not like CAPEX is going to get cut, but the the uh it's going to it's not like it's going to stop growing. But the day that it that uh the the the street, you know, consensus estimates largely get it right and then you don't have to worry about, you know, the unknownness of how much they're going to invest. Then then you can really focus on the ROI, their ROAI. That's the day that these stocks probably, I mean, I think there's going to be a huge run in these stocks. The question is when. If you can show these kind of um uh revenue backlog results and then get to that point where you feel like you're, you know, you got eyes line of sight into peak capex intensity, uh then um uh then I think that's when the stocks start really working. You got a headwind here with that investment spend, that CAPEX spend. It's a headwind. You need uh either a very low valuation or you need the outstanding revenue results. I think that creates a more there's a more positive setup here for a meta and an Amazon than there is for a Google. Do you have a total CAPEX estimate for these companies for this year? Well, I'm focused on uh on next year already. So I think Google and Amazon are each going to spend 300 billion at a minimum uh next year. So that's 600 billion. And then you throw in, um, Meta's probably 200 billion and Microsoft, I don't cover Microsoft, but I think that number is at least 200 billion. So there I I just added up a trillion dollars in CAPEX uh in 2027 by the four major uh hyperscalers. You could throw in uh SpaceX, you could throw in Oracle. So you're well above a trillion. That's the amount of spend we're talking about, unprecedented.
DYAX Investor Sentiment
Bullish (Long) 59% · Bearish (Short) 41%
337 participants
Related News
- Getty Realty anticipates $2.52-$2.54 2026 AFFO per share as it expands investment activity
- CrowdStrike extends slide for seventh straight session
- Galderma Group AG Non-GAAP EPS of $2.34, net sales of $3.13B
- Tesla and Alphabet Trigger Nasdaq 2.5% Selloff as Oil Nears $100
- Apple Tests Smarter Shopping Experience
- Novocure outlines 2026 revenue of $710M-$725M while targeting adjusted EBITDA of $0M-$15M
