Key Points

  • Gartner released a forecast on July 27, predicting that global IT spending will reach $6.37 trillion in 2026,raising its previous forecast, due to organizations increasing their investments in artificial intelligence.
  • The latest forecast represents a 14.2% increase from 2025 and is an upward revision from Gartner's April forecast of$6.31 trillion.
  • "Despite concerns about an AI bubble, AI infrastructure growth remains rapid, with spending on AI-related hardware and software continuing to rise. Demand from hyperscale cloud providers continues to drive investment in servers optimized for AI workloads," said John-David Lovelock, Distinguished VP Analyst at Gartner, in a press release.

In-Depth Analysis

AI spending continues to grow, even as corporate investment in the technology faces increasingly intense scrutiny from investors and boards.

According to a study released last month by Cloudzero, a self-described AI ROI company, nearly 90% of finance leaders feel pressure to link AI spending to business outcomes within a year, but only 22% have achieved that goal. The Cloudzero survey also found that 66% of boards tie additional AI funding to proof of return.

Meanwhile, research released by Janus Henderson Investors in May showed that nine out of ten investors have at least some concerns about AI, with 28% worried that AI may fail to meet expectations. Two-thirds of investors said theyare concerned about a potential AI bubble or market correction in the near term。

Investor uncertainty about AI's future can sometimes trigger stock market volatility.

Last Thursday, Alphabet's stock fell about 7% after the Google parent company raised its 2026 capital expenditure outlook to a range of $195 billion to $205 billion, up from its previous forecast of $180 billion to $190 billion, to accelerate AI infrastructure investment. The sell-off occurred despite strong AI-related demand—Google Cloud revenue rose 82% year-over-year to $24.8 billion.

"Even though we have significantly increased capacity over the past three years, demand still exceeds investment. Like others in the industry, we are in a supply-constrained environment," said Alphabet CFO Anat Ashkenazi on Thursday's earnings call.

Gartner said its latest IT spending forecast places greater emphasis on AI. The research firm expects data center systems in particular to be the fastest-growing technology segment this year.

"Driven by the expansion of AI workloads and demand for high-performance computing, hyperscale cloud providers and enterprises are rapidly expanding next-generation data center capacity," Lovelock said in the press release.