Analysts Expect AI Capex to Reach $800 Billion in 2026. That Number Could Actually Surpass $1 Trillion. Here Are 2 Stocks That Will Benefit.
AI capital expenditures could be even higher than most analysts expect.
Overview
The global data center build-out is well on its way. According to consensus estimates, tech companies are expected to deploy roughly $800 billion in capital this year to scale AI infrastructure. Investment is only expected to grow from here. Research from McKinsey & Co. projects AI capex to reach $7 trillion globally by 2030. The consulting group calls it "one of the largest infrastructure build-outs in modern history."
Other analysts are more cautious. Research from AllianceBernstein observes:
Details
The use cases of AI are slowly emerging, albeit it's frankly too early to really lay out a high confidence path. However, memories of the tech bubble frequently emerge in conversations with clients, as do analogies with the railway-building frenzy of the nineteenth century and other episodes where the adoption and economic benefits of a new technology took much longer than investors first hoped, and where the ultimate beneficiaries were not clear.
Source
Originally published at www.fool.com.