JPMorgan Chase Report: AI hashrate demand fundamentals remain unshaken, with capital expenditure by the seven major cloud vendors projected to increase from $443 billion in 2025 to $1.577 trillion in 2027.
JPMorgan Chase analysts, including Gokul Hariharan, stated in their Asia Tech Strategy report published on September 16 that market concerns about AI infrastructure investment are overblown, and open-source models and AI safety regulations are not core issues. The report predicts that the combined capital expenditure of seven hyperscale cloud vendors, including Amazon, Microsoft, and Google, will increase from an estimated $443 billion in 2025 to $933 billion in 2026, and further rise to $1.577 trillion in 2027. The analysts believe that semiconductor equipment will become the most critical bottleneck in the AI supply chain around 2027, and bottlenecks in IC substrates and advanced packaging will also persist.
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