Woofun AI reports that Morgan Stanley analyst Brian Nowak maintains that capital expenditure by major technology firms on artificial intelligence data centers has not yet peaked, suggesting concerns regarding a slowdown in AI investment are premature. The bank has elevated its capital expenditure forecasts for Amazon, Meta, and Google, projecting that AI data center spending by hyperscalers including Meta, Amazon, Alphabet, Microsoft, and SpaceX will reach approximately $1.2 trillion in 2027 and rise to about $1.4 trillion in 2028.

Morgan Stanley attributes the accelerated construction pace among hyperscalers to supply chain bottlenecks, surging computing power demand, and increasing costs of key components. The bank estimates that Meta's 2028 capital expenditure could reach roughly $250 billion, Amazon's could hit approximately $318 billion, and Google's 2027 capital expenditure may reach around $350 billion. Nowak retains a positive rating for Meta and Amazon, citing confidence in the long-term returns of AI investments for these entities.