Tech stock futures higher this morning – Contracts Nasdaq Before the opening in New York, the 100 index rose 0.22% after a number of technology companies said they would increase capital expenditures on artificial intelligence and promised to provide large amounts of cash, enough to affect U.S. GDP growth.
The only bad news? Some analysts have begun warning that the pace of capital spending growth will begin to slow this year and next.
shares Yuan and Tesla rose in overnight trading. Meta rose 7.85% and Tesla rose 3.29%. MicrosoftThis compares to a 6.53% decline overnight.
All three stocks were driven by earnings calls, with each company pledging to continue investing in artificial intelligence:
- Yuan said it Capital expenditures (capex) could hit $135 billion this yearnearly double last year’s spending.
- Microsoft said it spent $72.4 billion in the first half of the fiscal year, with capital expenditures in the latest quarter higher than in the previous quarter, but growth in its Azure cloud unit is slowing, so the stock was hit.
- Tesla said it will double capital spending in 2026 as it shifts away from electric vehicle production toward artificial intelligence and robotics. The company also said it would invest $2 billion in Elon Musk’s xAI company, which makes the Grok chatbot.
- In Korea, Samsung It also said it would increase artificial intelligence capital expenditures. Jefferies analysts Masahiro Nakanomyo and Hisako Furusumi said in a summary of the conference call that “Samsung’s artificial intelligence-related demand is likely to continue to expand and memory capital expenditures will also rise significantly.” “Capital expenditures in 2026 will focus on… future business expansion.” Memory chip maker SK Hynix will do the same, they said.
- and OpenAI will cost $40 billion New investment comes from NVIDIAMicrosoft and Amazon According to the Financial Times, this is part of a $100 billion financing round. Much of that cash will be used for artificial intelligence data centers.
It’s clear that technology stocks and stocks of companies that provide real estate, components and power for data centers will be driven by AI capital spending this year.
So how big is this influx of cash?
Here are some estimates from Wall Street analysts:
Goldman Sachs expects AI capital expenditures to reach $539 billion, a 36% increase from $398 billion in 2025. The bank said it will grow to $629 billion by 2027, but at a rate of only 17%.
Analyst Ben Snider and colleagues warn that the growth rate of artificial intelligence capital spending will start to slow.
They told clients earlier this month: “While the likelihood of some of today’s largest companies achieving…success is high, the scale of current spending and market capitalization, as well as increased intra-group competition, suggest that the likelihood that all of today’s market leaders will generate sufficient long-term profits to adequately reward today’s investors is diminishing.”
Bank of America Artificial intelligence/cloud capital expenditures are expected to reach US$641 billion this year, an increase of 36%, and will reach US$739 billion next year, an increase of 15%. “Importantly, we view (chipmaker) TSMC’s fiscal 2026 capex guidance of approximately $54 billion (up 32% year-over-year) as a good leading indicator of the industry’s overall spending appetite as they talk closely to all hyperscalers and commit the first venture capital in the industry,” analyst Vivek Arya wrote in a note. wealth.
Wells Fargo AI capital expenditures increased 34%. “Consensus views growth will slow significantly (34% expected in 2026, 70% for LTM), but their capex has been a surprise, with capex 50 percentage points higher over the (past 12 months) than a year ago. TSMC’s sales also suggest that hyperscaler capex may grow 49% year over year in 2026. Our analysts expect even higher capex for META, MSFT and AMZN. An AI arms race.” Ohsung Kwon and colleagues said in a recent research paper.
Piper Sandler The spending is believed to be so large that it will boost U.S. gross domestic product, in part by having a knock-on effect on the builders and energy providers needed to service all the data centers being built. “While data center construction spending increased by only $18 billion, we estimate that this triggered approximately $175 billion in incremental spending, equivalent to 0.6% of GDP,” Nancy Lazar and her team said.
Here’s a snapshot of the market ahead of the opening bell in New York this morning:
- S&P 500 Index Futures are up 0.22% this morning. After briefly breaking through 7,000 points on the previous trading day, it closed flat at 6,978.03 points, setting another record high.
- Stoxx Europe 600 Index It rose 0.26% in early trading.
- UK FTSE 100 Index It rose 0.38% in early trading.
- Japan’s Nikkei 225 Index Very flat.
- China CSI 300 up 0.76%.
- Korea Composite Stock Price Index up 0.98%.
- Indian NIFTY 50 up 0.3%.
- Bitcoin down to $87,900.