Amazon and Alphabet Just Committed $420 Billion to Data Centers. 1 Stock Is the Better Buy.

Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) 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.

Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

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.