Morgan Stanley holds $3.4 trillion AI spending forecast post-selloff

Morgan Stanley retained its forecast of $3.4 trillion in combined capital spending by major cloud companies in 2028–29, calling the post-election AI stock selloff an overreaction. It shifted 20% of 2028 data centre capacity projections to 2029 but kept hyperscaler capex estimates intact at $1.6 trillion and $1.8 trillion respectively.