UBS projects global AI capital expenditure will approach $1 trillion in 2026 and reach approximately $1.4 trillion in 2027, with memory price hikes driving the majority of this growth. The bank estimates memory-related spending will surge from $71 billion in 2025 to $367 billion in 2026 before climbing to $923 billion in 2027. Rising memory costs are expected to account for roughly 60% of the increase in AI capex this year. By 2027, as spending on other AI components declines to $525 billion from $631 billion in 2026, memory cost increases will exceed the entire net growth in AI capital expenditure, representing about 90% of the total rise.