Key Points
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Hyperscalers, including Microsoft, Amazon, Alphabet, and Meta Platforms, are raising their capital expenditure budgets for 2026.
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Rising infrastructure spend bodes well for the semiconductor industry.
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Hyperscalers are racing to secure additional GPUs, while also investing in custom silicon designs.
According to a recent report by Goldman Sachs, artificial intelligence (AI) hyperscalers are projected to spend over $500 billion on infrastructure in 2026. This increased capital expenditure enables companies like Microsoft, Alphabet, Amazon, and Meta to rapidly expand their data center capacities.
The growing demand for GPUs is central to this expansion, benefiting key companies in the semiconductor sector, notably Nvidia, which is seeing a backlog of hundreds of billions of dollars in orders for their advanced chips. Other beneficiaries include Broadcom and Taiwan Semiconductor Manufacturing, both of which support the infrastructure required for AI technologies and stand to gain as hyperscalers increase their investments in data processing capabilities.
