By Keithen Drury
Publication Date: 2026-02-16 07:45:00
Alphabet’s massive capital expenditure plans are great news for computing providers.
Listening to other companies’ earnings reports outside of the ones you invest in is an important task for investors. You can pick up lots of useful information, especially from the customers of companies that you’re invested in.
One of the companies to report earnings recently dropped a bombshell that should make Nvidia (NVDA 2.21%) and Broadcom (AVGO 1.87%) investors jump for joy. Alphabet (GOOG 1.08%) (GOOGL 1.06%) told investors that they should expect capital expenditures between $175 billion and $185 billion for 2026.
This confirmed that we’re entering into another year of huge AI spending, which should benefit stocks like Nvidia and Broadcom. This announcement makes me even more bullish on these two stocks, as it shows we’re still in the early innings of AI spending.
Image source: Getty Images.
Alphabet is fulfilling internal and external computing capabilities
Alphabet is in a fairly unique position among the AI hyperscalers in that it is using its computing resources for both internal and external computing needs.
On the internal side, it’s powering its in-house generative AI model, Gemini. It’s also using these resources in Google DeepMind, another AI research wing of Alphabet. Alphabet has been known to use its Tensor Processing Units (TPUs) in many internal applications, as they can be more cost-effective than GPUs in many situations. Alphabet designed these TPUs in tandem…
