The AI Capex Tsunami: How Microsoft and Meta’s Billions Fuel an Entire Market

Big Tech isn’t just riding the AI wave—they’re powering it with unprecedented investments. This week, blockbuster earnings and guidance from Microsoft and Meta sent shockwaves across the entire AI ecosystem, lifting not just their own shares but a broader group of companies powering the next generation of artificial intelligence.

AI Spending: A Network Effect That’s Only Accelerating

Both Microsoft and Meta posted earnings that demolished analyst expectations, with the common denominator being massive—and still increasing—AI-centric capital expenditure.

Microsoft: Forecasted $30 billion in capex this quarter alone, implying a run-rate of $120 billion for fiscal 2026—largely on AI infrastructure.

Meta: Hinted at spending close to $100 billion next year, with a mission to maintain its AI leadership.

Far from slowing after the initial buildout, these giants are doubling down, especially as tax tweaks and favorable financial conditions allow them to keep raising and investing capital at record scale. All that money doesn’t just disappear into server racks—it flows through an entire network of suppliers, builders, and enablers.

Capex Wins = Revenue for the AI Supply Chain

Microsoft and Meta’s spending is the lifeblood of the AI economy, feeding a chain that includes:

Semiconductors: Companies like Nvidia (NVDA) and AMD (AMD) design the chips that power these AI systems.

Server & Data Center Hardware: Super Micro Computer (SMCI), Dell (DELL), and others assemble the high-powered servers.

Networking & Power: Arista Networks, Vertiv Holdings (VRT), and GE Vernova provide the infrastructure and logistics.

Utilities: Firms like Constellation Energy (CEG) and Vistra (VST) help light up these electricity-hungry operations.

Every dollar spent by the hyperscalers flows down as someone else’s top-line growth. That’s why “AI capex” is as much about Microsoft’s quarterly results as it is about the surging revenues at dozens of suppliers throughout the chain.

How Investors Can Ride the AI Infrastructure Boom

For those looking to invest in the “picks and shovels” of the AI revolution, there are ETFs that capture exactly this trend:

Global X Robotics & Artificial Intelligence ETF (BOTZ): Focuses on companies driving AI hardware, software, and robotics growth—including Nvidia, AMD, and automation leaders.

VanEck Semiconductor ETF (SMH): Offers exposure to leading chipmakers at the heart of the AI buildout, from Nvidia to TSMC.

First Trust Cloud Computing ETF (SKYY): Holds not just the cloud hyperscalers (Microsoft, Amazon, Google) but also many backbone infrastructure and service companies.

Invesco Data Center REITs & Digital Infrastructure ETF (PWD): For those wanting a real-asset angle on the digital gold rush—infrastructure and data center REITs.

New launch to watch: Defiance AI & Power Infrastructure ETF (AIPO), which explicitly targets grid and data-center suppliers.

The Bottom Line

The AI gold rush is just getting started, with hyperscalers’ spending providing a fertile landscape for a wide set of beneficiaries—chipmakers, hardware suppliers, networking companies, utilities, and more. As Microsoft and Meta make it clear that $100 billion+ annual capex is the new normal, investors have a unique opportunity to own the entire supply chain through targeted ETFs.

Pinpoint your best play on the AI capex boom with our ETF Compare Tool