What is the year-over-year growth rate in big tech capital spending?

The year-over-year growth rate is 74% compared to the same quarter last year.

Which companies are included in the capital spending estimates?

The companies included are Google (GOOGL), Microsoft (MSFT), Amazon (AMZN), and Meta (META).

Why is capital spending on AI rising?

Spending is rising due to the race among tech companies to build infrastructure needed to support AI applications, such as data centers and specialized chips.

Which other companies benefit from this spending?

Companies like Broadcom (AVGO) and Caterpillar (CAT) also benefit from the increased demand for AI infrastructure.

AI Spending War: No Letup in Sight as Big Tech Capex Surges 74%

Wall Street analysts estimate that combined capital spending by Google, Microsoft, Amazon, and Meta surged 74% year over year to $168 billion in the June-ending quarter, signaling no slowdown in the AI spending war.

July 7, 2026

2 min read

Source: The Wall Street Journal

Key Numbers

combined capex q2 2026

168B

yoy growth

74%

According to a report from The Wall Street Journal, there are no signs of big tech reining in its AI spending. Second-quarter reports due later this month are expected to show another period of blowout AI investments.

Details

Wall Street analysts estimate that combined capital spending by Google (GOOGL), Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META) surged 74% year over year to hit $168 billion in the June-ending quarter, according to consensus estimates from Visible Alpha.

Context

The surge comes amid a fierce race among tech giants to build the infrastructure needed to support AI applications, such as data centers and specialized chips. Companies like Broadcom (AVGO) and Caterpillar (CAT) are also benefiting from this increased demand.

What It Means for Investors

The continued massive spending underscores that AI remains a strategic priority for big tech, potentially supporting long-term revenue growth. However, investors should monitor the return on these investments, as any slowdown in growth could raise questions about the viability of this spending.

Frequently Asked Questions

Analysts estimate that combined capital spending by Google, Microsoft, Amazon, and Meta reached $168 billion in Q2 2026.

Found this useful? Share it

This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.