Big Tech's AI Spending Is on Track to Top $700 Billion This Year. Here's Who May Cash In Next.

El Paso residents urged city leaders to regulate or stop new hyperscale data centers, citing concerns about water, electricity demand, environmental impacts, and incentives. Meta is building one in El Paso; the Army plans another at Fort Bliss; a third is planned in Santa Teresa, NM. City Council voted May 26 to end data-center incentives. The city says Meta received an 80% property tax rebate up to $550M for an $800M investment and 50 jobs (now 300+). The city is drafting a Data Center Policy F

Big Tech’s AI capex is projected to exceed $700B in 2026, led by Amazon (~$200B), Microsoft (~$190B), Alphabet (up to ~$190B) and Meta ($125B–$145B), mostly for data centers and chips. American Electric Power (AEP) says it added 7 GW of future load in Q1 2026, totaling 63 GW by 2030 (nearly 90% data centers). AEP raised its 5-year capex plan to $78B and reported Q1 revenue +10% to $6.0B, EPS $1.64, reaffirming 2026 EPS guidance $6.15–$6.45.

Morgan Stanley analyst David Arcaro trimmed American Electric Power’s (AEP) price target from $136 to $129 but kept an “Overweight” rating, citing updated targets for North American regulated and diversified utilities/IPPs. The group rose 2% in April versus 10.4% for the S&P. AEP’s Q1 2026 results showed 7 GW of new project agreements, expected incremental load of 63 GW by 2030, and a $6 billion increase to a $78 billion five-year capital plan.

Truist analyst Richard Sunderland cut his AEP price target to $145 from $148 but kept a Buy rating, citing positive estimate revisions tied to nationwide data center construction and potential upside from the pace of development. Separately, Morgan Stanley analyst David Arcaro lowered his target to $129 from $136 and maintained Overweight, noting utility underperformance versus the S&P 500.

A CNBC report (May 29) cited Morgan Stanley research suggesting dividend initiations can boost returns: stocks announcing regular quarterly dividends outperformed the broader market by about 650 basis points over six months and by about 1,000 basis points over 12 months. Morgan Stanley said initiators often start near a 2.0% yield. The article lists dividend stocks with yields above 3% and analyst upside of at least 10%, including Cal-Maine Foods (6.30% yield; 10.12% upside) and American Electri

The article says US electricity demand hit a record last year, with data centers driving about 50% of the growth, and projects further increases in 2026-27. It links nuclear to meeting that demand and cites a US executive order to quadruple nuclear capacity by 2050. It lists nuclear-related stocks; for example, Morgan Stanley cut PEG’s target $94→$89 (Overweight) and kept 2026 operating earnings guidance $4.28-$4.40. For AEP, Morgan Stanley cut its target $136→$129 (Overweight) after Q1 results