Bank of America Forecasts Cloud, AI Infrastructure Capex to Hit $1.5 Trillion in 2027, Up 40-50% Annually

According to Bank of America, global cloud and artificial intelligence infrastructure capital expenditure is expected to reach approximately $1.5 trillion in 2027, with annual growth of 40 percent to 50 percent, according to a research report released by analyst Vivek Arya's team. The bank attributed this growth to sustained token usage, rapid AI agent adoption, and continued infrastructure supply constraints. Bank of America noted that the Philadelphia Semiconductor Index (SOX) gained 88 percent in Q2 before a 11 percent pullback in Q3, which the analysts view as normal seasonal weakness rather than a structural shift in AI demand. The bank identified low-beta semiconductor stocks including Nvidia, Texas Instruments, Analog Devices, Cadence Design Systems, and Synopsys as potential beneficiaries, along with memory chip makers, semiconductor equipment manufacturers, and optical communications vendors, as investors may redirect toward lower-volatility names in the near term.
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