This year, the four AI hyperscalers plan to spend around $650 billion in total on their data center capital expenditures.
That’s a daunting figure, but it will likely be exceeded as hyperscaler spending projections creep up throughout the year
However, next year, this figure is on track to reach $1 trillion, according to Nvidia (NASDAQ: NVDA). That would be a major increase, but it’s in line with the language that some hyperscalers have already been using. During its Q1 2026 conference call, one hyperscaler, Alphabet, told investors to expect “significantly” higher capital expenditures in 2027.
Informing investors that early in the year about the following year’s guidance can only mean one thing: Prepare for a huge increase in spending. That jibes with Nvidia’s $1 trillion projection. If that pans out, the three that should be able to capitalize on increased spending more than any others are Nvidia, Broadcom (NASDAQ: AVGO), and Taiwan Semiconductor Manufacturing (NYSE: TSM).