Alphabet and Amazon collectively told investors they plan to spend somewhere north of $375 billion on capital expenditures in 2026. The market’s response was about as warm as you’d expect: Alphabet shares dropped 6% and Amazon fell 4% on June 22.
The selloff isn’t an isolated tantrum. It’s the second major wave of capex-related punishment Big Tech has absorbed this year, following a February rout that erased over $1 trillion in combined market value across the sector.
The numbers behind the nervousness
Alphabet guided its 2026 capex at $175 to $185 billion. Amazon flagged approximately $200 billion. Nearly 80% of Amazon’s total outlay is estimated to be AI-related, according to Deepwater Asset Management’s Gene Munster.
The four major hyperscalers, Amazon, Alphabet, Microsoft, and Meta, are collectively on track for $600 to $725 billion in combined 2026 capital expenditures, a sharp increase year-over-year.
