AI Infrastructure Spending Reaches $700 Billion by 2026
The four largest U.S. hyperscalers—Amazon, Meta Platforms, Alphabet, and Microsoft—are projected to invest a combined $700 billion in artificial intelligence (AI) infrastructure by 2026. This marks an increase of over $300 billion compared to last year’s levels. According to McKinsey, 60% of this investment will be allocated to chips and computing hardware.
Taiwan Semiconductor Manufacturing Company (TSMC) is positioned to benefit significantly from this spending, as it controls 72% of the global foundry market and anticipates spending $52 billion to $56 billion in capital expenditures this year, up from $40.9 billion last year. TSMC expects its AI accelerator revenue to grow at a compound annual growth rate of mid-to-high fifty percentages through 2029.
Moreover, ASML Holding, the leading semiconductor equipment manufacturer, anticipates revenues between €34 billion ($40 billion) and €39 billion ($46 billion) for 2026, with a current order backlog of nearly €39 billion. ASML’s growth is driven by TSMC’s rising demand for advanced chip manufacturing equipment amid increasing AI infrastructure investments.
