In 2024 and 2025, major technology companies are projected to spend over $500 billion on capital expenditures (capex), primarily focused on artificial intelligence (AI) infrastructure. This trend is supported by a Morgan Stanley report highlighting NVIDIA's market capitalization of $3 trillion, backed by over $32 billion in quarterly AI revenue, while Broadcom's $1.1 trillion market cap is underpinned by $3.2 billion in quarterly revenue. Additionally, a report from Jefferies indicates that initial concerns regarding reduced spending due to competition from DeepSeek have been dismissed, with companies now expected to invest $320 billion in capex this year, a notable increase from $230 billion last year. Notably, NVIDIA, Microsoft, Amazon, Meta, and Alphabet collectively account for more than 50% of NVIDIA's data center revenue, which constitutes 88% of the company's total revenue. Furthermore, analysts have projected a 40% increase in capex spending for select chip companies this year.