Big Tech AI Capex to Reach $650B in 2026: MSFT, GOOGL, AMZN, META Guidance

Big Tech hyperscalers Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), and Meta (META) project combined AI-related capital expenditures of $635–$665 billion in 2026, a 67%–74% increase from $381 billion in 2025. Amazon plans $200B, Alphabet $175–$185B, Meta $115–$135B, and Microsoft $145B. Spending will focus on AI chips, servers, and data center infrastructure. Reactions were mixed: Amazon down 8.25% Friday, Alphabet -3%, Microsoft -11% after Q4; Meta rose after reporting AI-driven ad gains. Analysts note heightened scrutiny of returns on AI investments amid concerns of a potential bubble, with buying likely to be driven by companies showing tangible revenue impact. Chipmakers Nvidia (NVDA), Broadcom (AVGO), and AMD (AMD) gained 5% and 6% on the anticipation.