AI Capex Boom Reshapes Global Equity Leaders

Across global markets, artificial intelligence is reshaping capital spending plans and valuations for some of the largest listed companies. Cloud and hyperscale providers, chipmakers and critical equipment suppliers are all leaning into long-term AI infrastructure build-outs, while investors weigh accelerating growth against rising investment and execution risk.

Recent disclosures from Amazon, ASML, Nvidia, Super Micro Computer, Broadcom, Alphabet and Meta Platforms highlight how AI-related demand is influencing revenue growth, margins and multi-year capex plans. At the same time, consumer and retail names such as Costco, and China-based Alibaba, face more traditional questions around earnings momentum and valuation.

Amazon’s shares have fallen sharply after the company disclosed a significant step-up in capital expenditures alongside its fourth-quarter and full-year 2025 results on Feb. 5. Wall Street had anticipated capex guidance of about $150 billion for the year, but management instead outlined plans for $200 billion, triggering what the article described as sticker shock.

Over the last three years, Amazon has accelerated capex to support surging AI demand, investing across the infrastructure value chain from data centers and custom silicon to GPUs sourced from Nvidia. While rising infrastructure spend has coincided with decelerating cash flow generation, sales and operating profits from Amazon Web Services have consistently risen over the past year, with AWS showing both accelerating sales and profit margins.

The company is using that high-margin cloud performance to fund AI initiatives, including building its own data centers and chips and maintaining a strategic investment in Anthropic. According to the article, Amazon’s forward price-to-earnings multiple is now near its lowest level of the current AI cycle, even as AWS growth and margins remain robust.

ASML Holding is reporting strong demand for its advanced lithography tools as major cloud and hyperscale customers ramp AI-related data center investment. The company’s extreme ultraviolet and High NA systems are tied directly to the production of leading-edge chips used by large technology platforms.

ASML also plays a central role in the EU Chips Act NanoIC pilot project, a €2.5 billion initiative aimed at supporting next-generation European AI and semiconductor capabilities. Hosting High NA equipment within this project and contributing substantial private funding further embeds ASML in Europe’s efforts to build more independent semiconductor and AI capacity.

The stock has risen 64.0% over one year, 100.4% over three years and 152.5% over five years, with a current share price of €1,190.4. Over the last month ASML shares are up 9.8%, although they slipped 0.3% in the past week. The article notes that fresh AI spending plans and the NanoIC role together position ASML as a core equipment supplier for future AI infrastructure.

Nvidia and Super Micro Computer are both benefiting from the AI infrastructure boom, but with differing financial profiles. Nvidia’s fiscal third-quarter 2026 revenue rose 62% year over year and 22% sequentially to $57 billion, with the company guiding for roughly $65 billion in fourth-quarter revenue, plus or minus 2%. Its gross margin increased to 73.4% from 72.4% the prior quarter, and its return on equity stands at 99.2%.

Super Micro’s fiscal second-quarter 2026 revenue grew 123% year over year to $12.7 billion, beating analyst expectations of $10.4 billion. Management expects fiscal third-quarter revenue of about $12.3 billion and full-year net sales of at least $40 billion, supported by demand for its Data Center Building Block Solutions for AI clients.

However, Super Micro’s gross margin has declined from 11.8% a year earlier to 6.3%, down from 9.3% in the prior quarter, and its debt-to-equity ratio of 66.9% exceeds Nvidia’s 6.3%. The article contrasts Super Micro’s 17.8% return on equity with Nvidia’s higher level, underscoring Nvidia’s stronger profitability metrics despite Super Micro’s faster top-line growth.

Broadcom is another major AI beneficiary. Once a more traditional networking and software provider, it now builds custom AI chips for top hyperscale customers. In its fourth quarter of 2025, Broadcom reported 28% year-over-year revenue growth and a 36% increase in free cash flow to $7.4 billion, while announcing a 10% dividend increase.

Broadcom’s backlog stands at $162 billion, and its market capitalization has exceeded $1 trillion. As of Feb. 11, the share price had gained 45% over 12 months and 615% over five years, reflecting investor confidence in its AI positioning and financial strength.

Alphabet and Meta Platforms continue to benefit from the expansion of digital advertising, supported by rising internet usage and AI-driven targeting. Alphabet’s revenue increased 15% in 2025, while Meta’s rose 22%, with both companies described as extremely profitable and able to fund substantial AI-related capital expenditures.

Alphabet shares trade at a forward price-to-earnings ratio of 28.8, and Meta at 22.5. The articles characterize both as well positioned for future earnings growth as AI tools enhance engagement and advertiser effectiveness across Google Search, YouTube and Meta’s social media platforms.

Alibaba Group’s stock has rebounded about 45% over the past year, aided by easing geopolitical concerns and the return of Jack Ma. Much of the gain occurred between late August and early October after the June-ended quarter report, which referenced strong AI-driven growth.

The company is scheduled to report earnings for the December 2025 quarter on or around Feb. 19. Over the first six months of fiscal 2025, ended Sept. 30, Alibaba’s cloud revenue grew 30% year over year, while its two e-commerce segments rose 12% and 14%. A 27% revenue decline in its smaller businesses limited overall revenue growth to 3%, to nearly $70 billion.

Alibaba’s price-to-earnings ratio is 22, below Amazon’s 28 and Sea Limited’s 47, but higher than the 12 level seen last summer. The company has missed earnings estimates in three of the last four quarters, with its sole beat during the prior-year December quarter, leaving investors focused on whether the upcoming report will sustain its recovery.

Costco Wholesale, a leading global retailer, reported $66 billion in net sales for its fiscal 2026 first quarter ended Nov. 23. The company serves 81 million membership households, benefitting from scale-driven cost leadership, strong bargaining power with suppliers and a no-frills store format that supports everyday low prices.

Management continues to open 25 to 30 new warehouses annually, and Costco’s shares have delivered a 193% total return over five years as of Feb. 10. The stock most recently traded around $1,018 per share, with a market capitalization of $443 billion and a 52-week range from $844.06 to $1,077.49.

The company’s current price-to-earnings ratio of 52 is described as very expensive, suggesting limited margin of safety for new investors even as Costco maintains a reputation as a high-quality, durable business.