Prediction: Alphabet's $200 Billion Bet Will Result in Huge Profit Growth
Alphabet is already converting its capex investments into AI revenues.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is increasing its already massive bets on the future of demand for AI computing infrastructure. In the company's most recent quarterly report, management upped its 2026 capital expenditure guidance to a range of $195 billion to $205 billion, setting $200 billion as the midpoint of anticipated AI spending. While some may scoff at this massive amount of money being spent, the reality is that there's a huge amount of money to be made in providing AI cloud infrastructure, and the evidence is already showing up in Alphabet's results.
The expansion of its hyperscaler business could result in massive profit growth for Alphabet, making the stock well worth buying at its current level.
Image source: The Motley Fool.
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Originally published at www.fool.com.