The artificial intelligence investment cycle is broadening beyond GPUs, with hyperscalers including Microsoft, Amazon, Alphabet, Oracle and Meta collectively on track to spend more than $700 billion in capital expenditures in 2026, according to S&P Global. Global private AI investment reached $285.9 billion in the U.S. in 2025, far outpacing Europe and China, while 88% of organizations globally reported using AI, up from 78% in 2024. Spending is expanding across the technology stack to custom AI accelerators, networking, storage, data centers and power infrastructure, benefiting companies such as Broadcom, Marvell Technology, Arista Networks and Palantir. Governments are also accelerating quantum computing funding through programs like the U.S. National Quantum Initiative and Europe's Quantum Flagship, supporting pureplays like D-Wave and Rigetti. The convergence of AI and quantum computing is expected to create long-term opportunities as quantum systems eventually complement classical computing for complex workloads.
