Morgan Stanley Forecasts AI Infrastructure Spending Reaching $1.58 Trillion in 2027, Up 60% From 2026

Morgan Stanley forecasts AI infrastructure spending reaching $1.58 trillion in 2027, up 60% from 2026, with Nvidia ($NVDA) accounting for an estimated $690 billion of the modeled revenue impact.
AI-related stocks are projected to drive 78% of S&P 500 earnings growth and roughly 24% of revenue growth in 2027, highlighting the market's growing dependence on AI investment.
However, rising debt financing and more than $1.1 trillion in pending hyperscaler lease commitments introduce risks if borrowing costs increase or AI spending slows.