Morgan Stanley projects global investment in AI computing by hyperscalers and cloud providers to reach approximately $1.58 trillion in 2027. This figure represents a significant increase from the $980 billion estimated for 2026, with forecasts suggesting the total will climb to $1.81 trillion by 2028.
This spending is expected to account for roughly 5% of S&P 500 sales in 2027 and drive about 25% of the index's sales growth. Analysts estimate that AI enablers and adopters will collectively contribute around 78% of the projected S&P 500 earnings growth for that year.
Half of the projected investment is expected to be financed through debt. Additionally, the forecast incorporates lease commitments, which are estimated to contribute $195 billion in 2027 and $246 billion by 2028. Hyperscalers currently hold over $1.1 trillion in pending lease commitments.
Oracle leads in lease commitments with $57.2 billion, followed by Microsoft, Meta, Amazon, and Google. NVIDIA is forecast to capture approximately two-thirds of AI-related inflows, totaling nearly $690 billion. While spending remains high, analysts note potential pressure on free cash flow.
