Good morning AI-driven capital spending is increasing rapidly, and the economy remains attractive and increasingly profitable – for now, according to JPMorgan Global Research’s half-year outlook.
Analysts expect an expanding AI investment cycle to underpin growth expectations, led by “AI upstream” investments in data centers, chips and supporting infrastructure. Much of this activity remains concentrated in the US, which accounts for approximately 85% of AI and machine learning venture capital, with spillover effects expected in China, South Korea and Taiwan due to their role in semiconductor supply chains.
This broad wave of investment is also changing corporate strategy as technology companies race to expand beyond their traditional markets and capture some of the rapidly growing AI infrastructure opportunities. Qualcomm, for example, is the latest major technology company to aggressively expand into the data center market.
Although the company is traditionally best known for its smartphone and mobile chip business, it unveiled a comprehensive AI data center strategy at its investor day on June 24 that targets the fast-growing AI infrastructure market. Qualcomm expects its data center business to generate more than $15 billion in annual revenue by fiscal 2029. If the company achieves this goal, the data center division will become its largest growth business outside of smartphones.
The company “delivers a comprehensive roadmap for next-generation AI data centers and is at a key inflection point with the momentum of multi-year, cross-generational agreements with leading customers,” Qualcomm CFO and COO Akash Palkhiwala wrote in a LinkedIn post.
Meanwhile, memory chip maker Micron on June 24 reported a 346% jump in quarterly revenue and quarterly profit of $28.2 billion, nearly 15 times higher than the year-ago quarter. Micron’s results briefly boosted investor sentiment after a selloff in AI and technology-related stocks began earlier in the week, boosting futures for both the tech-heavy Nasdaq and the broader S&P 500. Assets reported.
In its half-year outlook released on June 24, JPMorgan also increased its estimate of global AI-related capital spending by 2030 to $5.5 trillion from $5.1 trillion, reflecting greater capacity expansion and increased debt financing. The bank now expects AI-related debt financing to reach $4.1 trillion as loan-to-cost ratios rise.
Analysts also forecast continued growth in hyperscaler spending, with capital spending reaching $650 billion in 2026 and topping $1.1 trillion in 2027. Despite the rapid investments, profitability is expected to remain robust and operating cash flow to exceed $900 billion by 2027. (You can read more about JPMorgan’s outlook here.)
Capital spending for hyperscalers like Amazon, Google and Microsoft is reaching unprecedented levels. Microsoft, for example, expects to invest around $190 billion in capital expenditures in calendar year 2026, a 61% increase from the previous year.
As hyperscalers continue to report increasing AI-related revenue, investors remain focused on whether enterprise adoption and monetization will keep pace with the trillions invested. Currently, the AI investment cycle continues to accelerate, but whether these returns ultimately justify the level of spending is likely to remain one of the market’s defining questions.
Sheryl Estrada
sheryl.estrada@fortune.com
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Fortune 500 Power Moves
Christina Zamarro EVP and CFO of The Goodyear Tire & Rubber Company (No. 239) will be leaving the company for another opportunity effective July 10. Zamarro joined Goodyear in 2007 and spent nearly two decades in senior finance roles at the company. She became CFO on January 1, 2023. “She was a valued partner across the company, helping to advance key initiatives and position the company for further progress,” CEO Mark Stewart said in a statement.
Scott Deakin has been named interim CFO at Goodyear, effective July 1. A former public company CFO and cross-industry operational manager, Deakin has more than 25 years of financial and operational experience and most recently served as CFO at Gypsum Management & Supply, Inc., a wholesaler of interior design products, from 2019 to 2026.
Goodyear is conducting an extensive search process to find a permanent chief financial officer.
Every Friday morning, the weekly Fortune 500 Power Moves column tracks leadership changes at Fortune 500 companies – see the latest edition.
Other notable moves
Adarsh Parekh has been named CFO of Quantum Space, a defense and aerospace manufacturer. Parekh, a space industry veteran, will oversee the company’s financial strategy as it advances development of the Ranger spacecraft platform and discusses a proposed merger with Inflection Point Acquisition Corp. VI (Nasdaq: IPFX) enters the public markets. He comes to Quantum Space from Sidus Space, where he served as CFO. Previously, Parekh was CFO of Terran Orbital, where he led the company’s sale to Lockheed Martin.
Jason Garlic has been named CFO of Fortrea (Nasdaq: FTRE), a global contract research firm, effective July 6. He will succeed Jill McConnell, who is stepping down. Knoblauch joins Fortrea from Clario, an endpoint data solutions provider. Before that, he was CFO at Curia. Earlier in his career, Knoblauch held various financial leadership positions in pharmaceutical product development, including interim CFO.
Big deal
Freshfields’ Proxy Season 2026 report concludes that changing SEC guidance and uncertainty surrounding Rule 14a-8 are forcing boards and management teams to be more reactive to shareholders and activists, often in a more sensitive, politicized environment.
The report concludes that even as support levels become more selective, the number of proposals remains high and companies face increased scrutiny around ESG, governance and political disclosure. We break down how engagement is changing, what pressure points are emerging in the boardroom, and what companies can do now to prepare.
Go deeper
“A former Fed colleague from Kevin Warsh on what awaits us: ‘Plan for higher rates'” is one Assets Article by Catherine Gioino.
Overheard
“Historically, technological changes have changed jobs more than eliminated them – and employers are signaling that this transition will be no different.
– Said Sabrina White, SVP of School and Industry Engagement at the Graduate Management Admission Council (GMAC). Assets on the results of GMAC’s latest Corporate Recruiters survey.
https://fortune.com/2026/06/29/ai-spending-boom-accelerates-big-tech-trillion-infrastructure-qualcomm-cfo/
