Big Tech capex up 5-8x since Q1 2023 while Apple spends 20% less; only Mag7 name beating Nasdaq

a16z · x · 2026-11-07

a16z's Charts of the Week compares Big Tech capex in the AI boom:

• Since Q1 2023, Alphabet, Microsoft, Amazon, and Meta have grown capex 5-8x; Meta's capex now exceeds 50% of revenue
• Apple spends 20% less than before the AI boom, holding capex at 4% of revenue
• Over the last 30 days, hyperscalers, neoclouds, semis, and the AI supply chain have dragged the Nasdaq down, while the biggest positive contributors are names like Costco and Walmart
• As of earlier this week, Apple was the only Mag7 company beating either major index year-to-date; Nvidia's slim S&P 500 lead has since evaporated

Takeaway: last year's Mag7-concentration story has inverted — big tech broadly lags while beneficiaries of its spending lead.

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