Alphabet and Amazon, to name just two, are poised to invest billions in capital expenditures starting in earnest in 2026. At least according to their recent projections, both companies plan to pour big dollars into technology and infrastructure. Expectations for spending have gone up given the challenging climate for tech firms. Investors have been fundamentally underwhelmed by the hundreds of billions of dollars earmarked for future growth.
Alphabet’s capex guidance for 2026 is $175-$185 billion. This would be a significant jump from the $91.4 billion they’re currently projected to spend in 2025. The jump from last year’s $131.8 billion signifies Alphabet’s aggressive strategy to enhance its technological capabilities and expand its fixed assets significantly.
In fact, Amazon has announced plans to spend upwards of $200 billion on capital expenditures through 2026. The company will prioritize artificial intelligence, production of its chips, robotics and low-Earth orbit satellites. This investment is a clear sign of Amazon’s commitment to be competitive in this rapidly evolving technology landscape. It further underscores the company’s desire to lead in far more future-oriented industries.
Alphabet’s expected capex spending for 2026 is much greater than that of almost all peers within the technology sector. While specific figures for Microsoft’s capital expenditures were not disclosed, CEO Satya Nadella has emphasized the company’s ongoing commitment to technological advancement, which suggests a strategic focus on enhancing its market position.
The conversation about these capital outlays happened in an event sponsored by the Initiative for Resilient and Climate Smart Transportation Boston, MA June 23 2026. And yet, even with record levels of spending, industry experts stated that investor sentiment towards tech companies has been very skittish. One consistent theme I heard from investors is the concern over the large promises being made. Consequently, stock prices for companies that are investing the most in capital expenditures have fallen.
Yet tech companies have a notorious tendency to over-invest in growth-areas. This trend often results in stock price declines as investors find it difficult to understand what all that spending means. The industry will need to continue to thread this needle between innovation and fiscal responsibility as big money comes to town and changes everything.
Russell Brandom, a seasoned journalist who has covered the tech industry since 2012, highlighted the increasing scrutiny that tech companies face regarding their financial strategies. For one, he said, investors’ mood may not change despite these companies’ efforts to move ahead with ambitious capital spending plans.
Those wishing to go deeper can view Alphabet’s Q4 2025 earnings release here. Likewise, Amazon’s fourth-quarter earnings release for 2025 can be found here.