Technology
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AI hyperscalers eyed for $795 billion 2026 capex
The Economic Times··15 Sept
BofA Global Research expects Microsoft, Alphabet, Amazon, Meta and Oracle to spend around $795 billion in 2026 capex. Investors watched for slowdown talk after AI leaders, including Anthropic CEO Dario Amodei, called to pace development. The Philadelphia SE Semiconductor Index is still up nearly 60 percent in 2026. President Donald Trump on Monday called AI safety threats a hoax.
Prism
What It Means For You
- Semiconductor shares took the brunt of Monday selling even as the sector index stayed sharply higher year to date.
- Spending expected near $800 billion in 2026 has underpinned a wide AI-linked rally, including an S&P 500 more than doubling since October 2022.
- Investors are watching for cancelled data-centre orders before treating talk of a slowdown as fact.
What's Happening
- Calls to rein in AI development followed recent warnings about existential risk.
- BofA also projects nearly $1.08 trillion of hyperscaler capex in 2027.
- The broad market index is up more than 11 percent so far this year on profit growth tied to that spending.
What traders are pricing into AI stocks
- Chuck Carlson of Horizon Investment Services said he needs concrete cancelled orders, not only talk.
- Erik Kratz said picks-and-shovels chip names are most exposed if capability gains slow.
- James Humphries said AI infrastructure stocks had priced in an uninterrupted capex boom.
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