Big Tech Increases AI Hardware Investments
Major tech companies are significantly ramping up their capital expenditures on AI hardware. Microsoft plans to increase its capex by 66% to $37.5 billion for 2026. Meta Platforms aims to spend between $162 billion and $169 billion, a 37% increase from 2025. Alphabet’s expenditure is set to double to between $175 billion and $185 billion, and Amazon is projecting a 51% rise to $200 billion for the same year.
Dominance in Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company (TSMC) holds a commanding 72% of the global semiconductor foundry market, while ASML is the sole provider of EUV lithography machines crucial for producing advanced chips. TSMC reported revenue of $122.42 billion in 2025, marking a 35.9% year-over-year increase, while ASML’s sales grew to 32.6 billion euros, a 15% rise from 2024. Both companies are positioned to benefit from the surge in AI investments, with TSMC serving top clients such as Apple and Nvidia.
