Morgan Stanley projects global capital expenditures related to artificial intelligence will reach approximately $1.58 trillion by 2027. This forecast was recently revised upward by 14% to include previously uncounted lease obligations for data center capacity.
Nvidia is positioned to capture about $690 billion to $700 billion of this total spending. Semiconductors and servers are expected to account for roughly 42% of the 2027 AI capital expenditures, amounting to approximately $672 billion.
Approximately 65% of total AI-related spending, or $1.03 trillion, is expected to flow to S&P 500 companies. Analysts anticipate that AI capital expenditures will contribute 5% of S&P 500 revenue and drive 25% of sales growth in 2027.
Nvidia CFO Colette Kress noted that hyperscaler capital expenditures are expected to approach $800 billion in 2026 and reach $1.3 trillion in 2027. Major companies driving this infrastructure buildout include Microsoft, Alphabet, Amazon, Meta, and Oracle.
