By Kif Leswing
Publication Date: 2026-02-04 21:55:00
Broadcom shares climbed 6% in extended trading on Wednesday after Google reported earnings and surging capital expenditures for artificial intelligence.
Google said on Wednesday that it expected to spend as much as $185 billion on capital expenditures this year, which is nearly double what it spent last year.
Ben Reitzes, Melius Research head of technology research, said the capex spend would be a boon for Broadcom and other names tied to Alphabet.
“That is an incredible number. We are laughing because that number is so good for the Google cohort,” Reitzes told CNBC’s “Closing Bell Overtime” following the release.
Google is among a handful of technology companies that are increasing spending on capex in order to build data centers focused on artificial intelligence.
Much of Google’s AI software doesn’t run on industry-standard Nvidia chips, but instead on its own tensor processing units. For example, Google’s state-of-the-art Gemini 3 model was brained on TPUs. Broadcom helps Google…
