Alphabet CEO Sundar Pichai Just Made a $200 Billion Infrastructure Move. Nvidia, Micron, and Broadcom Investors Should Rejoice.
Alphabet's spending plan boost is great news for several companies.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is the largest AI hyperscaler, sitting at a $4.35 trillion market cap. It is a major player in the AI realm, as it has a dominant cloud computing service and is also competing with its own family of large language models. The decisions that it makes influence the entire industry, and several equipment providers in the AI industry are thrilled about Alphabet's latest announcement.
During Alphabet's Q2 earnings release, it increased its capital expenditure guidance range from $180 billion-$190 billion all the way up to $195 billion-$205 billion. That's a huge bump from CEO Sundar Pichai and his team at Alphabet, but if demand is there, then this increase makes a ton of sense. There are several companies slated to benefit from this rise, but chief among them are Nvidia (NASDAQ: NVDA), Micron (NASDAQ: MU), and Broadcom (NASDAQ: AVGO). This trio is thrilled about rising spending, and they make for great investments now.
Alphabet CEO Sundar Pichai. Image source: Alphabet Inc.
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Originally published at www.fool.com.