Zacks Investment Ideas highlights Meta, Amazon, Alphabet, Microsoft, and Nebius; AI CAPEX spending expected to reach $1 trillion or more in 2027

CAPEX spending from big tech hyperscalers is expected to soar from under $500 billion in 2025 to $646 billion in 2026 and a staggering $1 trillion or more in 2027.

Hyperscaler CAPEX in 2026 will represent 2% of GDP in 2026 and is roughly the same size as the market cap of the stock markets in Belgium, Denmark, and Indonesia. In Q1, AI was already 75% of GDP growth.

Microsoft recently paid 'neocloud' provider Nebius Group 40% of a multi-year contract upfront, demonstrating intense demand for AI infrastructure from hyperscalers.