Hyperscalers Expected to Add 34 GW of Compute by 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20 hours ago
0mins
Should l Buy GOOG?
Source: seekingalpha
- Compute Capacity Growth: Morgan Stanley analysts project that hyperscalers like Google, Amazon, Meta, and Microsoft will add up to 34 gigawatts of compute by 2027, indicating a strong demand for the age of inference.
- Amazon Web Services Performance: Despite AWS adding only about 5 gigawatts of compute in its first 18 years, it is expected to add 20 gigawatts next year, enough to power approximately 15 million U.S. homes, showcasing its sustained market leadership.
- Key Players Analysis: Google is expected to add around 7 gigawatts in 2027, with Amazon and Microsoft each contributing about 5 gigawatts, while Meta's capital expenditure will add approximately 4 gigawatts, reflecting intense competition among major companies in the cloud computing space.
- Forward Purchasing Trends: Amazon, Microsoft, and Meta are actively engaging in forward purchasing, with at least 50% of their capital expenditures this year expected to come online in 2027 and beyond, demonstrating a strong anticipation of future compute demand.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 393.320
Low
255.00
Averages
336.08
High
400.00
Current: 393.320
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
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- Gemini Update Expectations: Analysts anticipate that Google may announce updates to Gemini 3.2 or 3.5 rather than a full generational leap to Gemini 4, indicating the company's ongoing efforts to catch up and innovate in the AI sector.
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See More
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