"The total spend now for 2026 from these big hyperscalers has now topped $700 billion. This number is rising all the time and does mean more demand for chips, AI chips and tech equipment."
"Alphabet spent $35.67 billion on capex in Q1 alone, more than doubling year-over-year, while Google Cloud backlog nearly doubled quarter on quarter to over $460 billion."
"Amazon outspent everyone with $44.2 billion in the quarter as AWS grew 28%, its fastest pace in 15 quarters, and its in-house chip business topped a $20 billion revenue run rate."
"Meta raised full-year 2026 capex to $125 to $145 billion from a prior $115 to $135 billion, citing higher component pricing and additional data center costs."
Hyperscalers have significantly increased their capital expenditures, with total spending for 2026 exceeding $700 billion. This surge is driving demand for chips and technology equipment. Alphabet reported a $35.67 billion capex in Q1, while Amazon led with $44.2 billion, marking a 28% growth in AWS. Microsoft added $30.88 billion, with AI revenue surpassing $37 billion. Meta raised its capex forecast to $125-$145 billion, citing higher costs, which led to a decline in its stock price.
Read at 24/7 Wall St.
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