Bank of America analysts reiterated a bullish outlook on data center and artificial intelligence capital expenditures for 2025 in a note on Friday, pointing to strong spending signals from major U.S. “hyperscalers.”
Key Highlights
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Q1 hyperscaler spending reached $92.0 billion, narrowly missing projections of $93.8 billion.
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BofA forecasts total AI capex of $414 billion in 2025 (up 44% from 2024) and $432 billion in 2026.
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Top stock picks remain Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO), with AMD (NASDAQ:AMD) and Marvell Technology (NASDAQ:MRVL) as compelling secondary plays.
Hyperscaler Signals
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Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) have reaffirmed their 2025 capex plans.
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Meta (NASDAQ:META) raised its guidance to $64–$72 billion (from $60–$65 billion).
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Amazon (NASDAQ:AMZN) kept its $105 billion capex outlook unchanged, while Marvell saw volume gains from AWS and others.
Despite concerns that China’s DeepSeek AI launch could shift spending to leaner models, BofA sees overall capex momentum intact as hyperscalers expand their AI infrastructure.
Valuation Context
With AI-driven spending set to surge, assessing chipmaker valuations versus sector growth is critical. Investors can compare current semiconductor multiples using the Sector P/E Ratio API, which offers real-time P/E data across industries to gauge whether top AI plays still offer attractive entry points.
