AI spending forecast at $1.6 trillion in 2027, benefiting chip and power sectors
Morgan Stanley predicts $1.6 trillion in AI infrastructure spending in 2027, with chip and power companies among the biggest beneficiaries.
Tech giants Meta, Google, Microsoft and Amazon are driving huge AI infrastructure spending. Below them are data centre, computer hardware and power companies competing for a share of $1.6 trillion.
Morgan Stanley names computer chip, server, network, memory and power sectors as the best bets to profit. South-Korean makers Samsung and SK Hynix are well positioned, with Samsung shares up 140 per cent over the past year.
AI spending is expected to account for 25 per cent of all sales growth on the S&P 500 in 2027 and 78 per cent of profit growth. Rising borrowing costs are exposing risks for debt-heavy companies such as Coreweave, Nebius and IREN.
These early-stage businesses must borrow heavily to fund ambitious plans. Profitable hyperscalers can absorb higher interest rates.
Macquarie Group warns weaker AI capex forecasts may need trimming if rising yields persist.
- $1.6 trillion in 2027
- Forecasted AI spending
- Up 140 per cent past year
- Samsung share gain
- 25 per cent from AI
- S&P 500 sales growth
- 78 per cent from AI
- S&P 500 profit growth
Why it mattersInvestors need to understand which companies will actually profit from the AI boom versus which ones face financing risk as interest rates stay elevated.
AustraliaAustralian superannuation funds hold exposure to many of these sectors. A story about Australian founder Nscale's failed Microsoft funding deal illustrates the volatility and real risk in this space.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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