Goldman Sachs: AI Capex Boom Will Continue to Drive S&P 500 Cash Spending in 2026

By Guntakin Mehnatli
October 24, 2025

Goldman Sachs predicts total S&P 500 cash spending will rise 11% next year to $4.4 trillion, driven by a 17% jump in AI-related capital expenditure from tech giants like Amazon, Microsoft, Google, Meta, and Oracle. The bank said these five “hyperscalers” now account for over a quarter of total corporate capex, thanks to data center and AI infrastructure expansion.

Fiscal incentives under Trump’s “One Big Beautiful Bill Act” — allowing full expensing of R&D and equipment — are expected to boost spending further. Goldman analyst Ryan Hammond added that CEO confidence is improving and policy uncertainty is easing.

While strong AI returns justify the investment surge, Goldman warned that it’s curbing stock buybacks, which have stayed flat for the past four quarters.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Goldman Sachs S&P 500

About Author / Guntakin Mehnatli

Starting her career as a Political Journalist in 2020, Guntakin Mehnatli has dedicated the past four years to becoming an expert in finance and political news reporting. She also maintains a keen focus on trending topics in artificial intelligence, technology, startups, business and related areas.