Big Tech’s $600 billion AI spending spree spooks global investors

Planned capital expenditure of around $600 billion on AI infrastructure by major tech firms in 2026 is heightening investor concerns over returns, profitability and disruption risks, contributing to sharp declines in software and data analytics stocks.
Big Tech, AI spending, capital expenditure, data centre investment, investor sentiment, tech stocks, profitability concerns

A based report highlights that major technology companies are planning to spend roughly $600 billion on AI-related capital expenditure in 2026, including data centres, AI hardware and infrastructure, which has unsettled global markets.

Shares of some big tech firms fell sharply on investor worries that such eye-wateringly high AI spending may not deliver near-term profits and could weaken traditional software sectors.

For example, Amazon’s share price slid after announcing a $200 billion capex plan, and other software and analytics stocks also saw significant declines.

Analysts say markets are no longer interpreting AI spending purely as a growth narrative; heightened caution reflects concerns that heavy investment may pull future earnings forward too aggressively or concentrate market leadership among a few mega-cap names, while broad profitability remains uncertain.

This investor unease has contributed to broader equity market weakness, with indices like the S&P 500 and tech weights under pressure as software and data services stocks face continued selling.

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