Morgan Stanley Forecasts Five Tech Giants' AI Capex to Hit $1.4 Trillion by 2028

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According to Morgan Stanley's July 10 report, the combined capital expenditure of Microsoft, Google, Amazon, Meta, and SpaceX on AI infrastructure is expected to reach $1.4 trillion by 2028, representing over 3x growth from 2025. Available computing capacity will expand from 30GW to 120GW. Meta stands out as the top pick, with Capex projected at $225 billion in 2027 and $250 billion in 2028. Morgan Stanley highlighted Meta's API monetization advantage: its Muse Spark 1.1 pricing undercuts competitors by 30%-86%, with every 100MW of compute capacity generating approximately $8 billion in revenue and $1.90 per share in EPS accretion.
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