Amazon projects $200 billion in capital spending this year
Amazon.com (AMZN.O) on Thursday joined its Big Tech peers in projecting massive capital expenditures in 2026, the freshest sign yet that tech companies will not be hitting the brakes on their hefty AI investments anytime soon.
The company said it expects to invest about $200 billion in capital expenditures across Amazon in 2026, compared with an estimate of $144.67 billion, according to data compiled by LSEG.
Shares of the company fell nearly 8% in extending trading after its forecast for operating income in the range of $16.5 billion to $21.5 billion in the first quarter fell below an estimate of $22.04 billion.
Big Tech is spending enormous amounts of money on processors, data centers and networking equipment as the companies rush to build out their AI infrastructure. The top 4 hyperscalers - Amazon, Microsoft (MSFT.O), Alphabet's Google (GOOGL.O) and Meta (META.O) - are expected to collectively spend more than $500 billion this year.
But tech earnings over the past few days have shown that Wall Street has a clear message for tech companies: Soaring AI spending can continue only if companies show commensurate operational or financial returns.
Google's eye-watering capex forecast of
