Meta, Microsoft, Alphabet Lift AI Spending by Billions as S&P 500 Eyes 8,000
Updated
Updated · tradingkey.com · Jul 18
Meta, Microsoft, Alphabet Lift AI Spending by Billions as S&P 500 Eyes 8,000
3 articles · Updated · tradingkey.com · Jul 18
Summary
Meta, Microsoft and Alphabet unveiled fresh AI infrastructure spending, reinforcing the view that mega-cap tech is still accelerating—not trimming—capital outlays despite recent market volatility.
Meta expanded its Louisiana Hyperion data-center project to 5GW with investment above $50 billion and raised 2026 capital-expenditure guidance to $125 billion-$145 billion.
Microsoft said it will invest $10 billion in Japan from 2026 to 2029 and buy about 3,200 acres in Wyoming for data centers, while Alphabet is pursuing $80 billion in equity financing after guiding 2026 capex at $175 billion-$185 billion.
That spending push is helping offset concerns over semiconductor profit-taking, higher oil prices and stretched valuations that left the S&P 500 at 7,533.77 on July 16, down 0.51% on the day.
Wall Street banks including Goldman Sachs and Morgan Stanley still see the index near 8,000 by end-2026, but only if AI investment starts producing clear revenue and earnings growth.