Amazon (AMZN +3.29%) and Alphabet (GOOG +0.87%) (GOOGL +0.97%) are two of the biggest spenders in the artificial intelligence (AI) industry. Each has a sprawling cloud computing business with far more demand than capacity, so they’re spending unprecedented amounts of money to expand their data center footprints.
For 2026, Amazon plans to spend about $220 billion on capital expenditures, while Alphabet expects to lay out about $200 billion. Nearly all of that will go toward building out data centers.
While I think both stocks are strong investments, I believe Amazon has far more to gain. But don’t sleep on Alphabet, as it’s growing at an incredibly fast rate.
Image source: Getty Images.
AWS is a major part of Amazon’s overall picture
The reason why I think Amazon has more to gain from its cloud computing investment is the position of Amazon Web Services (AWS) within Amazon as a whole. In Q2, AWS accounted for about 21% of Amazon’s total revenue. However, AWS produced 60% of…
https://www.fool.com/investing/2026/10/11/amazon-and-alphabet-just-committed-420-billion-to/
