Global AI Spending to Reach $2.59 Trillion by 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 55 minutes ago
0mins
Should l Buy IT?
Source: Newsfilter
- Market Size Forecast: According to Gartner, global AI spending is projected to reach $2.59 trillion by 2026, reflecting a 47% year-over-year growth, indicating a rapid expansion of the AI market that necessitates increased investment from enterprises to keep pace with technological advancements.
- Surge in Infrastructure Demand: AI infrastructure, including AI-optimized IaaS and servers, is expected to account for over 45% of market spending, with AI-optimized server expenditures projected to triple over the next five years, highlighting cloud service providers' anticipation of workloads generated by generative AI models.
- Enterprise Application Potential: Although enterprises have yet to fully leverage their spending potential, AI model consumption is expected to grow by 110% by 2026, adding $6 billion in spending this year, demonstrating recognition of the potential value of intelligent automation within business workflows.
- Strategic Alignment Challenges: CIOs face challenges in proving the value of AI investments, as enterprises prefer tactical AI initiatives for incremental efficiency and productivity improvements, despite the hype and valuations surrounding AI that reflect aspirations for broader economic transformation.
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Analyst Views on IT
Wall Street analysts forecast IT stock price to rise
11 Analyst Rating
4 Buy
6 Hold
1 Sell
Moderate Buy
Current: 146.230
Low
150.00
Averages
190.70
High
240.00
Current: 146.230
Low
150.00
Averages
190.70
High
240.00
About IT
Gartner, Inc. delivers actionable, objective business and technology insights. Its segments include Business and Technology Insights (Insights), Conferences, and Consulting. The Insights segment delivers independent, objective insight to leaders across an enterprise through subscription services that include on-demand access to published research content, data and benchmarks, and direct access to a network of research experts located around the globe. The Conferences segment is designed for information technology (IT) and business executives as well as decision-makers looking to adapt and evolve their organizations through disruption and uncertainty, navigate risks and prioritize investments. The Consulting segment serves chief information officers and other senior executives to optimize technology investments and drive business impact. It also provides solutions for a range of IT-related priorities, including IT cost optimization, digital transformation, and IT sourcing optimization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Global AI Spending to Reach $2.59 Trillion by 2026
- Market Size Forecast: According to Gartner, global AI spending is projected to reach $2.59 trillion by 2026, reflecting a 47% year-over-year growth, indicating a rapid expansion of the AI market that necessitates increased investment from enterprises to keep pace with technological advancements.
- Surge in Infrastructure Demand: AI infrastructure, including AI-optimized IaaS and servers, is expected to account for over 45% of market spending, with AI-optimized server expenditures projected to triple over the next five years, highlighting cloud service providers' anticipation of workloads generated by generative AI models.
- Enterprise Application Potential: Although enterprises have yet to fully leverage their spending potential, AI model consumption is expected to grow by 110% by 2026, adding $6 billion in spending this year, demonstrating recognition of the potential value of intelligent automation within business workflows.
- Strategic Alignment Challenges: CIOs face challenges in proving the value of AI investments, as enterprises prefer tactical AI initiatives for incremental efficiency and productivity improvements, despite the hype and valuations surrounding AI that reflect aspirations for broader economic transformation.
See More
Gartner Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Gartner, Inc. is facing a securities fraud class action lawsuit due to misleading statements made between February 4, 2025, and February 2, 2026, potentially resulting in significant losses for investors.
- Stock Price Plunge: On August 5, 2025, Gartner reported a decline in contract value growth from 7% to 5%, causing its stock price to plummet by 27.6% to close at $243.93 per share, which severely impacted investor confidence.
- Continued Decline: On February 3, 2026, Gartner disclosed that its contract value growth rate had further declined to only 1% year-over-year, leading to an additional 20.9% drop in stock price to $160.16 per share, exacerbating investor losses.
- Legal Support: Glancy Prongay Wolke & Rotter LLP, a leading shareholder rights law firm, offers contingency fee arrangements to assist affected investors in recovering losses, highlighting its expertise in securities litigation.
See More
Shift in AI Infrastructure Market Towards Inference Workloads
- Rise of Inference Workloads: Deloitte estimates that inference workloads will account for two-thirds of AI data center computing power this year, a significant increase from 50% in 2025, driving demand for both compute and storage, which will influence investment strategies across the industry.
- Surge in Memory Demand: The explosive growth in inference requests is expected to benefit memory manufacturers like Micron and Sandisk, with Micron's stock rising 639% over the past year and Sandisk's soaring nearly 3,400%, reflecting strong market demand for memory products.
- Supply Shortage Warning: Industry participants warn that supply shortages may persist until next year, potentially leading to further price hikes in DRAM and NAND flash, with Gartner predicting the memory industry's revenue will reach $633.3 billion by 2026, significantly outpacing the growth of the non-memory semiconductor market.
- Attractive Investment Opportunity: Despite substantial stock price increases, Micron and Sandisk have forward P/E ratios of 7.6 and 24, respectively, indicating they are undervalued; given their earnings growth potential, investing in these stocks is considered a smart move.
See More
Multiple Companies Facing Class Action Lawsuits
- Gartner Lawsuit Overview: Gartner, Inc. (NYSE:IT) faces a class action for the period from February 4, 2025, to February 2, 2026, alleging that the company misled investors about its ability to meet consulting revenue targets and maintain CV growth rates, potentially impacting stock performance.
- Power Solutions Allegations: Power Solutions International, Inc. (NASDAQ:PSIX) is accused in a lawsuit covering May 8, 2025, to March 2, 2026, of overstating its sales capabilities in the data center market and failing to accurately reflect the costs and inefficiencies of manufacturing capacity enhancements, which may lead to investor losses.
- Gemini Space Station Claims: Gemini Space Station, Inc. (NASDAQ:GEMI) is facing a class action for the period from September 12, 2025, to February 17, 2026, for allegedly overstating the viability of its core crypto platform business, raising concerns about potential restructuring risks that could undermine investor confidence.
- Hercules Capital Legal Issues: Hercules Capital, Inc. (NYSE:HTGC) is implicated in a lawsuit from May 1, 2025, to February 27, 2026, for allegedly exaggerating due diligence in deal sourcing and portfolio valuation, leading to investor misunderstandings about its financial health, which could affect stock price stability.
See More
Gartner Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Gartner, Inc. (NYSE: IT) is facing a class action lawsuit for allegedly making materially false and misleading statements from February 4, 2025, to February 2, 2026, regarding its business operations and financial stability, resulting in artificially inflated stock prices during the class period.
- Investor Losses: The misleading statements led to significant losses for investors once the truth was revealed, highlighting serious deficiencies in the company's transparency and compliance practices that could impact future investor confidence.
- Legal Action Deadline: Investors must file papers by May 18, 2026, to serve as lead plaintiffs in the class action, although those who choose not to participate can still share in any recovery, indicating the legal system's role in protecting investor rights.
- Law Firm Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has extensive experience in class action litigation, underscoring its expertise and success in safeguarding investor interests.
See More
Gartner Faces Class Action Lawsuit; Investors Encouraged to Contact Attorneys
- Class Action Filed: Bragar Eagel & Squire has initiated a class action lawsuit against Gartner in the U.S. District Court for Connecticut on behalf of investors who purchased shares between February 4, 2025, and February 2, 2026, indicating significant legal challenges for the company.
- Investor Rights Protection: Investors have until May 18, 2026, to apply to be lead plaintiffs in the lawsuit, highlighting the potential impact of the case on shareholder rights and the importance of legal recourse.
- Allegations of Misrepresentation: The complaint alleges that Gartner failed to disclose its true capabilities in facing industry challenges, leading to misleading statements about its business prospects, which could undermine investor confidence.
- Legal Consultation Opportunity: Bragar Eagel & Squire offers no-cost legal consultations, encouraging affected investors to reach out, demonstrating the firm's commitment to protecting investor rights and providing accessible legal support.
See More
Global AI Spending to Reach $2.59 Trillion by 2026
- Market Size Forecast: According to Gartner, global AI spending is projected to reach $2.59 trillion by 2026, reflecting a 47% year-over-year growth, indicating a rapid expansion of the AI market that necessitates increased investment from enterprises to keep pace with technological advancements.
- Surge in Infrastructure Demand: AI infrastructure, including AI-optimized IaaS and servers, is expected to account for over 45% of market spending, with AI-optimized server expenditures projected to triple over the next five years, highlighting cloud service providers' anticipation of workloads generated by generative AI models.
- Enterprise Application Potential: Although enterprises have yet to fully leverage their spending potential, AI model consumption is expected to grow by 110% by 2026, adding $6 billion in spending this year, demonstrating recognition of the potential value of intelligent automation within business workflows.
- Strategic Alignment Challenges: CIOs face challenges in proving the value of AI investments, as enterprises prefer tactical AI initiatives for incremental efficiency and productivity improvements, despite the hype and valuations surrounding AI that reflect aspirations for broader economic transformation.
See More
Gartner Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Gartner, Inc. is facing a securities fraud class action lawsuit due to misleading statements made between February 4, 2025, and February 2, 2026, potentially resulting in significant losses for investors.
- Stock Price Plunge: On August 5, 2025, Gartner reported a decline in contract value growth from 7% to 5%, causing its stock price to plummet by 27.6% to close at $243.93 per share, which severely impacted investor confidence.
- Continued Decline: On February 3, 2026, Gartner disclosed that its contract value growth rate had further declined to only 1% year-over-year, leading to an additional 20.9% drop in stock price to $160.16 per share, exacerbating investor losses.
- Legal Support: Glancy Prongay Wolke & Rotter LLP, a leading shareholder rights law firm, offers contingency fee arrangements to assist affected investors in recovering losses, highlighting its expertise in securities litigation.
See More
Shift in AI Infrastructure Market Towards Inference Workloads
- Rise of Inference Workloads: Deloitte estimates that inference workloads will account for two-thirds of AI data center computing power this year, a significant increase from 50% in 2025, driving demand for both compute and storage, which will influence investment strategies across the industry.
- Surge in Memory Demand: The explosive growth in inference requests is expected to benefit memory manufacturers like Micron and Sandisk, with Micron's stock rising 639% over the past year and Sandisk's soaring nearly 3,400%, reflecting strong market demand for memory products.
- Supply Shortage Warning: Industry participants warn that supply shortages may persist until next year, potentially leading to further price hikes in DRAM and NAND flash, with Gartner predicting the memory industry's revenue will reach $633.3 billion by 2026, significantly outpacing the growth of the non-memory semiconductor market.
- Attractive Investment Opportunity: Despite substantial stock price increases, Micron and Sandisk have forward P/E ratios of 7.6 and 24, respectively, indicating they are undervalued; given their earnings growth potential, investing in these stocks is considered a smart move.
See More
Multiple Companies Facing Class Action Lawsuits
- Gartner Lawsuit Overview: Gartner, Inc. (NYSE:IT) faces a class action for the period from February 4, 2025, to February 2, 2026, alleging that the company misled investors about its ability to meet consulting revenue targets and maintain CV growth rates, potentially impacting stock performance.
- Power Solutions Allegations: Power Solutions International, Inc. (NASDAQ:PSIX) is accused in a lawsuit covering May 8, 2025, to March 2, 2026, of overstating its sales capabilities in the data center market and failing to accurately reflect the costs and inefficiencies of manufacturing capacity enhancements, which may lead to investor losses.
- Gemini Space Station Claims: Gemini Space Station, Inc. (NASDAQ:GEMI) is facing a class action for the period from September 12, 2025, to February 17, 2026, for allegedly overstating the viability of its core crypto platform business, raising concerns about potential restructuring risks that could undermine investor confidence.
- Hercules Capital Legal Issues: Hercules Capital, Inc. (NYSE:HTGC) is implicated in a lawsuit from May 1, 2025, to February 27, 2026, for allegedly exaggerating due diligence in deal sourcing and portfolio valuation, leading to investor misunderstandings about its financial health, which could affect stock price stability.
See More
Gartner Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Gartner, Inc. (NYSE: IT) is facing a class action lawsuit for allegedly making materially false and misleading statements from February 4, 2025, to February 2, 2026, regarding its business operations and financial stability, resulting in artificially inflated stock prices during the class period.
- Investor Losses: The misleading statements led to significant losses for investors once the truth was revealed, highlighting serious deficiencies in the company's transparency and compliance practices that could impact future investor confidence.
- Legal Action Deadline: Investors must file papers by May 18, 2026, to serve as lead plaintiffs in the class action, although those who choose not to participate can still share in any recovery, indicating the legal system's role in protecting investor rights.
- Law Firm Background: Bernstein Liebhard LLP has recovered over $3.5 billion for clients since 1993 and has extensive experience in class action litigation, underscoring its expertise and success in safeguarding investor interests.
See More
Gartner Faces Class Action Lawsuit; Investors Encouraged to Contact Attorneys
- Class Action Filed: Bragar Eagel & Squire has initiated a class action lawsuit against Gartner in the U.S. District Court for Connecticut on behalf of investors who purchased shares between February 4, 2025, and February 2, 2026, indicating significant legal challenges for the company.
- Investor Rights Protection: Investors have until May 18, 2026, to apply to be lead plaintiffs in the lawsuit, highlighting the potential impact of the case on shareholder rights and the importance of legal recourse.
- Allegations of Misrepresentation: The complaint alleges that Gartner failed to disclose its true capabilities in facing industry challenges, leading to misleading statements about its business prospects, which could undermine investor confidence.
- Legal Consultation Opportunity: Bragar Eagel & Squire offers no-cost legal consultations, encouraging affected investors to reach out, demonstrating the firm's commitment to protecting investor rights and providing accessible legal support.
See More
