In the first half of 2026, Alphabet (NASDAQ: GOOGL) outperformed Nvidia (NASDAQ: NVDA) with a stock price increase of 14.3%, compared to Nvidia’s 7.4%. This shift occurred after Alphabet’s strong Q1 earnings report boosted its share price by 10%. Despite Alphabet’s positive performance, concerns over its massive capital expenditures, which reached $80.6 billion in the first half—double the prior year—have investors anxious about the long-term payoff from its AI investments.
Alphabet has raised its full-year capital expenditure estimate to $200 billion, driven by a continued focus on AI infrastructure. In contrast, Nvidia reported a record quarterly free cash flow of $48.6 billion in Q2, benefiting from the hyperscale investments made by companies like Alphabet. Industry analysts predict that the increasing spending on AI will position Nvidia favorably in the second half of 2026.
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