Investors may have been glued to earnings from tech giants last week, but the bigger story was buried in a different line item: capex. And it points to an even larger shift unfolding across Big Tech.
Each megacap that reported quarterly results revealed massive AI-driven spikes in capital spending.
According to analyst Shay Boloor, Microsoft’s AI-related capex ran $40 billion above expectations, Amazon’s $13 billion higher, Meta’s $28 billion higher, and Alphabet’s $10 billion higher.
In total, these four companies are projected to pour an eye-watering $423 billion into building infrastructure and data centers to stay competitive in an increasingly data-hungry economy.
One of the boldest bets comes from Mark Zuckerberg’s Meta, which is throwing billions at “personal superintelligence,” tech designed to perform intellectual tasks better than humans.
Meta has already earmarked up to $72 billion in capex for 2025 alone, and analysts at JPMorgan see that number hitting $100 billion by 2026.
Microsoft’s CFO Amy Hood told investors the company’s AI spending is already paying off and said it plans to double capacity again. Amazon and Alphabet echoed that stance, promising heavy investments in AI and cloud infrastructure through 2025.
Boloor called this capex wave “so freaking bullish” for semiconductor names like Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and other chipmakers set to power the AI arms race.
Nvidia leads the semiconductor charge
Nvidia has cemented its place as the world’s top semiconductor company and, as of July, the most valuable public company with a market cap north of $4.3 trillion.
While Nvidia hogs headlines, AMD’s stock has quietly jumped 46% in 2025, pushing its valuation to $285 billion. Strong demand for AI chips, robust data center sales, and easing U.S.–China trade tensions have fueled the rally.
Broadcom has also delivered, climbing 26% this year to nearly $1.4 trillion, driven by its footprint in AI infrastructure and custom silicon.
All three chipmakers are core holdings in the Philadelphia Semiconductor Sector Index (SOX), which tracks 30 of the largest U.S.-listed semiconductor firms.
The SOX has fully bounced back from disruptions like President Trump’s “Liberation Day” tariffs and continues posting strong long-term gains. With Big Tech ramping up AI and cloud spending, U.S. semiconductor leaders look primed for another leg higher.
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