Google, Microsoft and other four tech giants to invest $725B in AI in 2026; analysts refute bear market claims

Google, Amazon, Microsoft and Meta plan to invest a total of $725 billion in capital expenditures in 2026, up 77% from last year, mainly for AI infrastructure. Google Cloud's revenue rose 63% year-on-year to $20 billion, performing strongly.

Microsoft set its 2026 capital expenditure at $190 billion, higher than market expectations, partly due to rising storage chip prices. Meta raised its expenditure forecast to $145 billion, affected by component price hikes and increased data center construction costs. Jefferies analyst Brent Hill stated clearly that the AI economy is healthy and bearish claims are unfounded.