Wall Street Eyes 23% AI CAPEX Growth in 2027 as Big Tech Continues Expansion

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According to Business Insider, Gene Munster, managing partner at Deepwater Asset Management, expects artificial intelligence capital expenditure among hyperscale tech companies to grow 23% in 2027 on July 22. Munster noted that following Google's $85 billion and Amazon's $25 billion fundraising announcements, market expectations have strengthened. He projected that at least three of the four major hyperscalers will likely maintain or raise CAPEX guidance, supporting continued investor confidence in AI infrastructure investments. The analyst views current valuations as undervalued relative to earnings expectations, with multi-year revenue growth forecasts of 20% or higher potentially offsetting valuation multiple compressions.
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