Morgan Stanley forecasts that the capital expenditure of major hyperscalers, including Microsoft, Google, Amazon, Meta, and SpaceX, will surge to $1.4 trillion by 2028, according to a report released on July 10. This represents a more than threefold increase from 2025 levels, with compute capacity expected to expand from 30GW to 120GW. Meta is highlighted as a top investment choice, with its Capex for 2027 and 2028 projected at $225 billion and $250 billion, respectively. The report underscores Meta's competitive edge in API business opportunities, noting that its Muse Spark 1.1 pricing is significantly lower than competitors. Morgan Stanley estimates that every 100MW of compute capacity could generate approximately $8 billion in revenue and increase earnings per share by about $1.9. The focus in the compute race is shifting from building capacity to selling it, with Meta leveraging five monetization paths. Morgan Stanley maintains an Overweight rating on Meta, Amazon, and Google.