Alphabet Is Dropping $190 Billion on AI Infrastructure: 3 Semiconductor Stocks Set to Win Big
Alphabet has increased its capital expenditures to $180-190 billion, mostly for AI spending, benefiting semiconductor stocks like Broadcom and Taiwan Semiconductor. The company's increased spending is expected to continue into next year, significantly increasing compared to 2026.
Alphabet has raised its capital expenditures to $180-190 billion, with most of the spending going towards AI infrastructure. This increase benefits semiconductor stocks, particularly Broadcom and Taiwan Semiconductor. Broadcom designs custom processors for Alphabet and has a deal that will extend through 2031. Taiwan Semiconductor, the world's leading semiconductor manufacturer, is expected to see ongoing demand for its processors. Alphabet's increased spending is expected to continue into next year, with the company saying it will significantly increase compared to 2026. Nvidia is also expected to benefit from Alphabet's AI spending as the company still relies on Nvidia's processors despite designing its own custom chips.
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