Google, Amazon, and Meta All Just Raised Capex Guidance Again. This Boring Industrial Wins No Matter Whose AI Infrastructure Is Best.
Just be sure to look more than a year down the road.
Overview
If there was any worry that spending on artificial intelligence (AI) was finally set to slow down, it's just been wiped away. Not only are big tech companies not dialing back their aggressive investments in AI infrastructure, but they're ramping them up.
Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) recently raised its 2026 capital expenditure (capex) forecast from a range of $180 billion to $190 billion to a range of between $195 billion and $205 billion. Amazon (NASDAQ: AMZN) upped its capex outlook for this year from a previous estimate of $200 billion to a new estimate of $220 billion. Facebook parent Meta (NASDAQ: META) is putting more money into AI as well, raising this money by issuing new debt.
Details
These expanded spending plans obviously bode well for a company like Nvidia (NASDAQ: NVDA), which still makes the majority of the processors at work within AI data centers. It's also a boon for less obvious, indirect beneficiaries such as Vertiv (NYSE: VRT) or GE Vernova (NYSE: GEV). The former offers power-distribution and chip-cooling solutions, while the latter makes electricity-generating natural gas turbines that can power an entire AI data center.
Source
Originally published at www.fool.com.