What is the projected AI capital expenditure for 2025 according to Goldman Sachs?

Goldman Sachs predicts AI capital expenditure to reach $539 billion in 2025.

What is the expected growth rate for AI capex in the coming years?

While AI capex is expected to grow significantly, analysts foresee a slowdown in the growth rate, with projections like 17% by 2027.

How is the massive AI spending expected to impact the U.S. economy?

The substantial AI investment is anticipated to boost U.S. GDP, driven by indirect spending in data center construction, energy supply, and other related industries.

Home / Business and Economy / AI Spending Boom Fuels Tech Stock Surge

AI Spending Boom Fuels Tech Stock Surge

29 Jan

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Summary

Tech stock futures rose as companies plan increased AI capital expenditures.
Analysts project AI capex to reach $539 billion in 2025, with slowing growth.
Massive AI spending is expected to boost U.S. GDP through related industries.

Tech stock futures showed an upward trend this morning, with Nasdaq 100 contracts indicating a rise before the New York opening bell. This optimism stems from several major tech firms announcing increased capital expenditures dedicated to artificial intelligence initiatives, suggesting a substantial influx of cash that could positively impact U.S. GDP.

Goldman Sachs forecasts AI capex to reach $539 billion in 2025, a 36% increase from the previous year, with further growth to $629 billion by 2027. However, analysts like Ben Snider at Goldman Sachs note that the growth rate is expected to slow to 17% by 2027.

Bank of America estimates total AI/cloud capex at $641 billion for the current year, projecting a 36% increase, followed by $739 billion next year with a 15% growth rate. The capital expenditure guidance from chipmaker TSMC for 2026, showing a 32% year-over-year increase, is seen as a key indicator of industry spending appetite.