$650 Billion AI Capex: How Marvell, Nvidia, Micron Benefit

Driven by a $200 billion expenditure plan from Amazon, the four largest internet firms are poised to invest $650 billion in capex this year. That figure is approximately 60% higher than the previous year, marking one of the most significant single-year spending increases the technology sector has ever experienced. The magnitude is impressive. Amazon’s $200 billion allocation is 52% greater than last year and surpasses the combined spending of Google and Microsoft in 2025. Google is also significantly ramping up its spending, targeting as much as $185 billion, as it integrates its AI tools more extensively into search, cloud services, and everyday software. So what is driving these companies to spend at such a rapid pace, and who ultimately benefits? Constructing competitive models necessitates substantial, upfront investments in physical infrastructure. Consequently, most of this expenditure is directed not towards software but rather to the companies providing compute, power, cooling, and connectivity.

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