Oct. 3 at 12:40 PM
Bank of America analysts remain bullish on AI capital spending, forecasting annual investments to nearly triple from 2025–30E, surpassing
$1.2T, constrained only by scaling of buildings and power. Key drivers include upgrading traditional infrastructure to accelerated computing, protecting competitive advantages against disruptors like OpenAI, xAI, and neocloud, sovereignty developments, and ongoing enterprise AI adoption.
BofA notes current AI infrastructure buildout is more resilient than prior cycles, funded by strong cash flows from hyperscalers and government buyers—top 5 U.S. cloud providers alone will spend ~25% of 2025 sales on capex, backed by >30% operating cash flow—while AI adoption can occur without costly consumer device upgrades.
The bank raised its cloud capex forecast to $ 443B/$ 528B for major public cloud providers (+58%/+19% YoY vs. prior +54%/+16%). Capex could triple to
$1.2T+ by 2030E at current 25–30% intensity.
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