Google has shown its resilience against AI. Google Cloud just posted jaw-dropping growth.
Alphabet's fourth quarter earnings were solid, but still understate how quickly one business unit is growing. This arm, of course, is Google Cloud, where its AI data center results are reported.
Alphabet's Gemini artificial intelligence (AI) is eating up market share from ChatGPT. The company's TPU offers a hardware competitor to Nvidia's GPUs.
When considered as a percentage of GDP, the projected spending of four tech giants for 2026 rivals the most momentous capital efforts in U.S. history, as shown in these charts.
Artificial intelligence remains the defining investment theme of this cycle, and few developments reinforce that view more clearly than the latest spending plans from Amazon ( AMZN ) and Alphabet ( GOOGL ). Both companies recently updated investors on their capital expenditure outlooks, signaling an aggressive push to expand data center capacity and AI infrastructure.
Over a transformative year from February 2025 to 2026, Alphabet (GOOGL)'s stock jumped 74%, driven by strong revenue growth, improved margins, and rising investor confidence. Supporting this increase: impressive Q4 results, a cloud boom, AI advancements with Gemini, and a new dividend—each contributing significantly to the rally.
Both companies are laying out huge capital to build out during the broader AI frenzy, with the trend seemingly not slowing anytime soon following recent quarterly results.
There has been a lot of hysteria and media attention over the midpoint of Alphabet Inc., aka Google's 2026 cap-ex guidance: $180 billion. A big number and a surprise? Yes. Irrational? Definitely not. Much less attention was paid to what matters: GOOGL's very strong Q4 report, particularly Google Search (+17% yoy) and Google Cloud (+48% yoy), and GC's $240 billion backlog (+55% sequentially). In my opinion, in its entirety, Google is the global AI leader because it has the biggest and most diversified wide-moat platform on which to monetize AI.
“A very valuable and profitable company in SpaceX has acquired a cash furnace named xAI.”
Posting strong Q4 results yesterday evening, Alphabet (GOOGL) stock still dipped half a percentage point in Thursday's trading session as investors pondered its massive spending plans.
Alphabet NASDAQ: GOOGL, the world's second-largest public company, once again delivered a standout earnings report, all but reinforcing its dominance across search, cloud, and artificial intelligence.
Shares in Alphabet Inc. are tracking lower following the release of its Q4 results. GOOGL's results were positive, and the management team provided a positive outlook that included significant AI spending. I believe the declines are a healthy pause following a nearly 70% gain over the last six months.