Combined hyperscaler AI capex for 2026 is on track to exceed $400 billion. That changes how we think about every sector that touches power, cooling and silicon.
Gallagher's column compiles the latest hyperscaler capex guidance — Microsoft, Google, Meta, Amazon, Oracle — and notes that the combined 2026 number is on track to exceed $400 billion, larger than the entire annual capex of the U.S. utility sector. AI capex is now large enough that it shows up in macro statistics, which is a transition in kind, not just degree.
We are overweight the immediate beneficiaries (NVDA, AVGO, TXN added today as our preferred analog/power-management proxy), the second-derivative beneficiaries (Power & Infrastructure: ETN, VST, GEV), and the inference-cost-curve story (GOOGL's new in-house chip, MSFT's Azure premium pricing). Underweight the names whose moats depend on training-cost stability (smaller foundation-model labs and their public proxies).
A 15-minute review — an update on positioning.
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