Microsoft, Meta, Amazon, and Alphabet plan to spend $732.5 billion on AI capital expenditures in 2026, with Goldman Sachs and JPMorgan Chase forecasting AI capex will top $1 trillion in 2027. Vertiv, a pure-play AI infrastructure company, reported second-quarter net sales growth of 24% year over year to $3.27 billion and raised its full-year net sales projection to $14 billion, a 37% increase from last year. Eaton, a legacy electrical supplier that has pivoted to an integrated chip-to-grid infrastructure provider, posted record quarterly revenue of $8.5 billion, up 21% year over year, with data center market orders surging 85%. Vertiv trades at about 40 times forward earnings with analysts projecting earnings per share to grow at about 40% compounded annually through 2028, while Eaton trades at 33 times forward earnings with projected annual EPS growth of about 15.5%.
