Goldman Sachs Sees AI Infrastructure Spending Reaching $1.4 Trillion in 2027

3 articles · Updated · The Motley Fool · Jun 14

$700 billion in AI infrastructure capex is expected this year, and Goldman Sachs said that pace is unlikely to slow in 2027.
Goldman projects next year's spending at $920 billion to $1.4 trillion, with a midpoint of $1.25 trillion equal to about 3% of GDP.
That share would still sit below some historic technology booms, including the U.S. and U.K. railroad build-outs of the late 1800s.
The spending outlook underpins bullish calls on Nvidia, AMD and Micron, which are positioned around AI training, inference, CPUs and memory demand.

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The $1.4 Trillion AI Infrastructure Boom: Risks, Rewards, and the Global Race for Capacity

Overview

Goldman Sachs has sharply increased its forecast for AI infrastructure spending, predicting global investment could surpass $1 trillion in 2027. This surge is driven by a persistent imbalance between the supply and demand for AI resources, leading to sustained high levels of capital expenditure and a major shift in technology investment priorities. As supply and demand are not expected to balance until at least late 2027, elevated spending is likely to continue, fueling long-term growth across the sector. This environment creates significant opportunities for technology companies and signals a profound transformation in how industries invest in AI capabilities.

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