Morgan Stanley Projects $1.58 Trillion in AI Spending for 2027

Morgan Stanley projects global hyperscaler and neocloud investment in AI computing will reach $1.583 trillion in 2027, a cycle the bank says would contribute about 24% of S&P 500 revenue growth that year. The estimate combines $1.388 trillion in cash capital spending with $195 billion in lease investment. The bank’s model puts the total at $978 billion in 2026 and $1.812 trillion in 2028, with the pace of growth slowing after 2027. The projected effect on the S&P 500 depends on how the spending flows to suppliers and companies adopting AI. Morgan Stanley estimates that about 65% of the 2027 investment, or roughly $1.029 trillion, would map to S&P 500 companies as supplier revenue. That amount would equal about 4.9% of projected index revenue.

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