Global spending on artificial intelligence is forecast to reach $2.59 trillion in 2026, a 47% increase from $1.76 trillion in 2025, according to Gartner. The research firm projects the total will climb further to $3.49 trillion in 2027. AI infrastructure represents the largest portion of this expenditure, accounting for $1.43 trillion this year, or more than 45% of the total.
John-David Lovelock, Distinguished VP Analyst at Gartner, described 2026 as the inflection year for the sector. The surge in capital allocation is visible in market performance, with the Nasdaq Composite up roughly 17% so far in 2026. Technology stocks led the market last week as investors continued to reward companies involved in the hardware supply chain.
The spending is driven by two primary groups: large cloud and internet platforms building data centers to train and run AI models, and chip companies supplying the processors, custom accelerators, and networking equipment required for those facilities. Recent reporting indicates that major platforms are now committing more than $100 billion annually each to capital expenditures. Their suppliers are reporting growth rates typically associated with early-stage companies rather than large established businesses.
Microsoft Corporation reported fourth-quarter fiscal 2026 revenue of $90.0 billion, an 18% increase. Microsoft Cloud revenue reached $59.3 billion, up 27%, while Azure and other cloud services revenue rose 43%. Satya Nadella, Chairman and Chief Executive Officer, stated that Azure revenue surpassed $100 billion for the first time this year and that Microsoft 365 Copilot reached over 30 million paid seats.
Meta Platforms, Inc. reported second-quarter 2026 revenue of $60.80 billion, up 28% year over year. The company recorded capital expenditures of $31.08 billion for the quarter and expects full-year 2026 capital expenditures to range between $130 billion and $145 billion. Mark Zuckerberg, Founder and Chief Executive Officer, expressed optimism about the potential ahead.
Broadcom Inc. reported third-quarter fiscal 2026 revenue of $29.6 billion, an 86% year-over-year increase. AI semiconductor revenue accounted for $16.7 billion of that total, up 221%. For the fourth quarter, Broadcom projects revenue near $34.8 billion and anticipates AI semiconductor sales will hit $21.7 billion. Hock Tan, President and Chief Executive Officer, noted that demand for custom AI accelerators and networking remains very strong.
Advanced Micro Devices, Inc. reported second-quarter 2026 revenue of $11.5 billion, up 50% year over year. Data Center segment revenue was $6.7 billion, a 107% increase. The company guided third-quarter revenue to approximately $13 billion, plus or minus $300 million. Dr. Lisa Su, Chair and Chief Executive Officer, cited record revenue and profitability as Data Center revenue more than doubled.