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Global spending on artificial intelligence (AI) infrastructure is accelerating rapidly, with projected capex by the world’s largest hyperscalers jumping from about $400 billion earlier this year to nearly $700 billion now, according to Aloke Gupte, Global Co-Head of Equity Capital Markets at Citi.
Gupte said investors across the world remain highly focused on the AI ecosystem, driving strong demand for technology-related capital raising and mega initial public offerings (IPOs).
According to him, the AI investment cycle is extending across the entire technology ecosystem — from hyperscalers and semiconductor companies to memory makers, infrastructure providers and cloud businesses. He said markets are witnessing heavy activity across equity, debt and mezzanine funding as companies prepare for the next phase of AI growth.
Gupte also said investors are actively positioning for large upcoming IPOs such as SpaceX and Anthropic. “These are in the territory of must-own companies,” he said, adding that investors see them as globally important businesses from day one.
Despite concerns that large global IPOs could absorb liquidity away from emerging markets, Gupte believes investor appetite remains strong because significant capital is still waiting on the sidelines. He added that many global investors have already prepared for these transactions well in advance.
Also Read | Foreign investors still backing quality Indian IPOs: Citi
On India, Gupte acknowledged that 2026 has been relatively weak for Indian equities compared with markets such as the US, Hong Kong and Taiwan. However, he said investors should look at India from a longer-term perspective rather than focusing only on recent market moves.
“It’s the only large market that has delivered positive returns every year since 2020,” he said.
Also Watch | SBI’s CS Setty says India has built a world-leading digital payments ecosystem
Gupte highlighted India’s scale as a major strength, noting that the country now has a nearly $5 trillion market capitalisation and more than 114 companies valued above $10 billion. He also said India’s equity market is broad-based and supported by strong domestic liquidity through retail investors and systematic investment flows.
According to Gupte, several large and globally relevant Indian companies are expected to come to market over the next 12–18 months. He believes these IPOs could attract strong foreign investor participation despite recent foreign institutional investor (FII) outflows.
Watch the full conversation here
He also pointed to India’s growing role in the global AI ecosystem, saying the country could contribute through infrastructure, hardware and digital capabilities as the technology cycle evolves further.
Also Watch | Consumer demand story remains strong and capable of double-digit growth: Nestlé India CMD
More broadly, Gupte said Asia is witnessing one of its strongest equity capital market cycles in recent years, driven by strong activity in China, Korea and Japan alongside the global AI investment boom.
Catch all the latest updates from the stock market here
Gupte said investors across the world remain highly focused on the AI ecosystem, driving strong demand for technology-related capital raising and mega initial public offerings (IPOs).
According to him, the AI investment cycle is extending across the entire technology ecosystem — from hyperscalers and semiconductor companies to memory makers, infrastructure providers and cloud businesses. He said markets are witnessing heavy activity across equity, debt and mezzanine funding as companies prepare for the next phase of AI growth.
Gupte also said investors are actively positioning for large upcoming IPOs such as SpaceX and Anthropic. “These are in the territory of must-own companies,” he said, adding that investors see them as globally important businesses from day one.
Despite concerns that large global IPOs could absorb liquidity away from emerging markets, Gupte believes investor appetite remains strong because significant capital is still waiting on the sidelines. He added that many global investors have already prepared for these transactions well in advance.
Also Read | Foreign investors still backing quality Indian IPOs: Citi
On India, Gupte acknowledged that 2026 has been relatively weak for Indian equities compared with markets such as the US, Hong Kong and Taiwan. However, he said investors should look at India from a longer-term perspective rather than focusing only on recent market moves.
“It’s the only large market that has delivered positive returns every year since 2020,” he said.
Also Watch | SBI’s CS Setty says India has built a world-leading digital payments ecosystem
Gupte highlighted India’s scale as a major strength, noting that the country now has a nearly $5 trillion market capitalisation and more than 114 companies valued above $10 billion. He also said India’s equity market is broad-based and supported by strong domestic liquidity through retail investors and systematic investment flows.
According to Gupte, several large and globally relevant Indian companies are expected to come to market over the next 12–18 months. He believes these IPOs could attract strong foreign investor participation despite recent foreign institutional investor (FII) outflows.
Watch the full conversation here
He also pointed to India’s growing role in the global AI ecosystem, saying the country could contribute through infrastructure, hardware and digital capabilities as the technology cycle evolves further.
Also Watch | Consumer demand story remains strong and capable of double-digit growth: Nestlé India CMD
More broadly, Gupte said Asia is witnessing one of its strongest equity capital market cycles in recent years, driven by strong activity in China, Korea and Japan alongside the global AI investment boom.
Catch all the latest updates from the stock market here
