Morgan Stanley raises AI capital expenditure forecasts for Meta, Amazon, and Google

Morgan Stanley analyst Brian Nowak believes that large tech companies' AI data center capital expenditures have not yet peaked, and has raised spending forecasts for Amazon, Meta, and Google. The bank expects AI data center spending on platforms such as Meta, Amazon, Alphabet, Microsoft, and SpaceX to reach $1.2 trillion in 2027 and $1.4 trillion in 2028. Supply chain bottlenecks, increased computing power demand, and rising component costs are driving the accelerated construction of hyperscalers. Morgan Stanley expects Meta's capital expenditures to reach $250 billion in 2028, Amazon to reach $318 billion, and Google to reach $350 billion in 2027. Nowak maintains positive ratings for Meta and Amazon.