Bank of America has revised its estimate for aggregate AI capital expenditure by the six largest hyperscalers upward by 17% to $3.6 trillion through 2028. The bank's semiconductor analyst had previously projected that hyperscaler capex would exceed $800 billion for fiscal year 2026, with a potential path to surpass $1 trillion in fiscal year 2027. BofA economists view AI capex as a growth driver through various channels, including manufacturing output and data-center construction.
AI Capex Growth Driver
According to BofA, AI capex will drive growth through four key channels: market footprint in data center projects, loan exposure, deposit capture, and capital markets and advisory services. The bank believes that larger banks will benefit from capital markets and advisory services, while mid-cap banks will benefit through credit formation, particularly in supporting physical infrastructure components.
Industry Opportunities
BofA identified FHN, TCBI, and ZION as well-positioned to support customers' AI financing needs based on their commercial and industrial credit exposures to data-heavy industries. However, the bank also noted that 15 states are considering legislation to ban or impose moratoriums on new data center development, which could impact AI capex growth.