JPMorgan Warns AI Capex Growth to Plunge From 100% in 2026 to 22% in 2027

According to JPMorgan Chase's latest "Flows & Liquidity" report, the U.S. tech giants' AI computing capital expenditure growth will plunge from 100% in 2026 to 22% in 2027, signaling a potential industry correction. The report, citing Bloomberg consensus estimates, projected that combined capex from Google, Amazon, Meta, Microsoft, and Oracle will reach $758.1 billion in 2026 (up 100% year-over-year), then slow to $925 billion in 2027 (up only 22%), with growth dropping further to 7%, 2%, and 1% in 2028–2030. JPMorgan warned that the sharp slowdown in capex growth, driven by semiconductor companies' inability to sustain valuation gains amid slowing AI monetization, could trigger significant order cuts across the chip industry and pressure semiconductor stock valuations.
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