Tech Giants' 2026 AI Investment Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Source: CNBC
- Capital Expenditure Surge: Microsoft, Meta, Alphabet, and Amazon are projected to increase capital expenditures from about $350 billion in 2025 to over $470 billion, indicating a strong commitment to AI infrastructure despite some market sentiment fluctuations.
- Meta's Spending Strategy: Meta raised its 2025 capital expenditure forecast to between $70 billion and $72 billion, facing investor concerns about profitability, while CEO Mark Zuckerberg emphasized the necessity of long-term investments for future returns.
- Amazon's AI Demand: Amazon increased its 2026 capital expenditure forecast to $125 billion, reflecting robust growth in demand for AI services, with analysts predicting a 17% increase in spending to $146 billion in 2026.
- Alphabet's Growth Potential: Alphabet raised its 2025 capital expenditure forecast to a range of $91 billion to $93 billion, with analysts expecting spending to exceed $115 billion in 2026, showcasing its ongoing expansion in the AI sector and recovery of market confidence.
Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMZN is 294.69 USD with a low forecast of 250.00 USD and a high forecast of 340.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
47 Analyst Rating
46 Buy
1 Hold
0 Sell
Strong Buy
Current: 238.420
Low
250.00
Averages
294.69
High
340.00
Current: 238.420
Low
250.00
Averages
294.69
High
340.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
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.
