Dan Ives Sees More Than $1 Trillion in 2027 Big Tech Capital Spending

Yorkville Ives analyst Dan Ives expects Big Tech and hyperscalers to spend more than $1 trillion on artificial intelligence in 2027, despite election-related uncertainty that could delay some data center projects.

Democrats gained control of both chambers of Congress in the Wednesday, Nov. 4, midterm elections. Semiconductor shares led a broader U.S. stock decline Thursday, Nov. 5.

Ives expects about 10% of the 800 to 1,000 AI-focused data centers projected for the United States may not be built. He tied that possibility to uncertainty after the election, while maintaining that technology companies’ AI investment will continue.

He also warned that semiconductor stocks could face 10% to 12% near-term downside. Ives remains bullish on AI over the longer term, but expects a rougher stretch for chip shares in the near term.

Ives pointed to potential regulatory challenges in Texas, which has attracted substantial data-center development.

Ives has also named Apple, Microsoft, Alphabet, Amazon, Meta, Palantir, Snowflake and CrowdStrike as technology companies he sees as positioned to benefit after the election. He previously called an AI-linked stock pullback a buying opportunity.