Alphabet Increases AI Investment Amid High Demand
Alphabet (NASDAQ: GOOG, GOOGL) announced on July 22 that it is raising its capital expenditure (capex) guidance for 2026 from $180-190 billion to $195-205 billion, reflecting increasing demand for its AI services. Google Cloud revenue surged 82% year-over-year to $24.8 billion, with a backlog of $514 billion, indicating robust growth in AI and cloud services.
Nvidia (NASDAQ: NVDA) is set to supply its latest Vera Rubin chip systems to Alphabet, enhancing the tech giant’s AI capabilities. Nvidia reported an 85% increase in revenue for the first quarter of fiscal 2027 and projects $91 billion in revenue for the current quarter, indicating strong sales driven by major clients like Alphabet.
Analysts are bullish on Nvidia’s stock, projecting a median price target of $300, which suggests a potential 45% increase over the next year. With earnings per share estimated to rise by 88% in the current fiscal year, Nvidia’s robust growth could result in its stock price reaching as high as $360, indicating a 74% upside from current levels.
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