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Alphabet’s Increased Capital Expenditures Boosts AI Infrastructure
Alphabet has raised its expected capital expenditures for 2025 to $85 billion, up from $75 billion, with plans for further increases in 2026. The increased funding will focus on AI infrastructure, including servers and data centers, which is anticipated to positively impact companies like Nvidia, which holds a 90% market share in data center GPUs.
Research firms like McKinsey & Company predict AI infrastructure spending could reach $6.7 trillion by 2030, with significant investments in AI hardware. Alphabet’s aggressive spending is likely to drive demand for Nvidia’s graphics processing units, further solidifying Nvidia’s position in the market.
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