Amazon and Alphabet Just Committed $420 Billion to Data Centers. 1 Stock Is the Better Buy.
Each company stands to benefit from booming cloud growth in its own way.
Overview
Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are two of the biggest spenders in the artificial intelligence (AI) industry. Each has a sprawling cloud computing business with far more demand than capacity, so they're spending unprecedented amounts of money to expand their data center footprints.
For 2026, Amazon plans to spend about $220 billion on capital expenditures, while Alphabet expects to lay out about $200 billion. Nearly all of that will go toward building out data centers.
Details
While I think both stocks are strong investments, I believe Amazon has far more to gain. But don't sleep on Alphabet, as it's growing at an incredibly fast rate.
Source
Originally published at www.fool.com.