Citigroup has raised its global AI capital expenditure forecast for 2026-2030 to $8.9 trillion, up from $8 trillion, citing accelerated enterprise demand and adoption of new AI tools and workflows. It also increased its global AI revenue forecast for the same period to $3.3 trillion from $2.8 trillion, noting strong revenue projections from companies like Anthropic and OpenAI.
The bank highlights that major hyperscalers—Amazon, Microsoft, Alphabet, and Meta—are expected to spend over $630 billion on capital expenditures this year. Despite recent market sell-offs in tech stocks, Citigroup views the hyperscalers' underperformance as a potential investment opportunity.
Citigroup argues that the market is overly focused on challenges like data center capacity and competition, while underestimating the high returns and early signs of a productivity cycle driven by enterprise AI adoption.
Main topics: AI investment and revenue forecasts, hyperscaler capital expenditures, market opportunity and challenges.
Citigroup on Tuesday raised its global artificial intelligence capital expenditure and revenue forecasts for 2026-2030, citing faster enterprise demand and adoption.
Citigroup said AI tools are set to advance rapidly,unlocking new âenterprise â applications and â accelerating theadoption of agentic systems and workflows. âIt raised its 2026-2030 global AI capex estimates to $8.9trillion âcompared to its earlier forecast of $8 trillion.
Hyperscalers - Amazon, Microsoft, Alphabet and MetaPlatforms - are expected to collectively spend more â than $630billion in âcapital spending this year. Citi also forecast global AI revenue for 2026-2030 â to jumpto $3.3 trillion from its prior forecast of $2.8 trillion. AI startup Anthropic has projected as much as $26 billionin annualized revenue in 2026, while ChatGPT maker OpenAIreported surpassing a $25⯠billion run rate, compared with$21.4⯠billion it generated at the âend of last year.
The bank sees underperformance among the hyperscalers asan âopportunity to âinvest, following â the AI-driven selloff intechnology stocks last month. "We believe the market remains focused on challenges ofbringing âglobal data center capacity online, rising financingneeds and intense competition, while overlooking elevatedreturns from these investments and early signs of anenterprise-driven productivity cycle."
Citigroup said AI tools are set to advance rapidly,unlocking new âenterprise â applications and â accelerating theadoption of agentic systems and workflows. âIt raised its 2026-2030 global AI capex estimates to $8.9trillion âcompared to its earlier forecast of $8 trillion.
Hyperscalers - Amazon, Microsoft, Alphabet and MetaPlatforms - are expected to collectively spend more â than $630billion in âcapital spending this year. Citi also forecast global AI revenue for 2026-2030 â to jumpto $3.3 trillion from its prior forecast of $2.8 trillion. AI startup Anthropic has projected as much as $26 billionin annualized revenue in 2026, while ChatGPT maker OpenAIreported surpassing a $25⯠billion run rate, compared with$21.4⯠billion it generated at the âend of last year.
The bank sees underperformance among the hyperscalers asan âopportunity to âinvest, following â the AI-driven selloff intechnology stocks last month. "We believe the market remains focused on challenges ofbringing âglobal data center capacity online, rising financingneeds and intense competition, while overlooking elevatedreturns from these investments and early signs of anenterprise-driven productivity cycle."
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