Morgan Stanley Predicts AI Spending Shift from Hardware to Software by 2028
Morgan Stanley forecasts a significant slowdown in AI spending growth by 2028, shifting the investment focus from hardware like chips and data-centre infrastructure to software and AI applications. Year-on-year capital expenditure by hyperscalers and cloud providers is expected to decline from 93% in 2026 to 14% in 2028. Despite this shift, demand for computing power remains strong amid power, labor, and regulatory constraints, with a projected 57 gigawatt power shortfall and delays in US data-centre projects.
First-hand measurement across 2 sources
We measured how 2 outlets covered this story. No outlet gave this story a measurable political slant — there is no left–right reading to report. Overall sentiment is positive (63/100). Lens Score 31/100.
Outlets measured: economictimes, thetribune. See how each one headlined and framed the same story in the source comparison below.
AI Analysis
Sentiment was consistent across outlets (58–68/100), indicating broadly factual reporting rather than editorialising.
Coverage timeline
thetribune broke this story on 28 Sept, 08:20 am. Other outlets followed.