With the increasing demand for generative AI capabilities, major tech companies are gearing up for significant capital expenditures, projected to reach $300 billion next year.
Morgan Stanley analysts emphasized, 'These high and rising capex numbers again speak to the importance of continued disclosure about new/incremental adoption, engagement, and revenue opportunities each of the four companies are seeing.'
In forecasting Amazon's capex, the analysts raised it by 22% to $96.4 billion, attributing the increase to investments in GPUs and servers to support data centers.
By 2026, Amazon is projected to lead with $105 billion in capex, while collectively, Amazon, Microsoft, Google, and Meta will spend $336.5 billion, illustrating a monumental growth in infrastructure needs.
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