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Alphabet lifts 2025 capex outlook, signaling more AI infrastructure demand
Alphabet boosted Q2 capex to $44.9 billion and raised full-year guidance to $195 billion to $205 billion, pointing to faster AI capacity delivery that could support Broadcom’s TPU and networking-chip revenue pipeline.
Alphabet’s latest earnings point to stronger AI infrastructure spending, with implications for semiconductor partner Broadcom that supplies components used in Alphabet’s tensor processing units and related networking technology, MarketBeat Ratings notes.
Alphabet reported Q2 capital expenditures of $44.9 billion, representing a 100.0% year over year increase and a 26.0% quarter over quarter rise, and the company said most of that spending is aimed at infrastructure to support its AI investments.
The company also raised its full-year 2025 capex outlook to $195 billion to $205 billion, versus a prior midpoint of $185 billion, which is about 8.0% higher at the midpoint. MarketBeat Ratings adds that the update increases the potential revenue ceiling for Broadcom in 2026 as Alphabet remains near the top of planned hyperscaler capex for 2026.
Alphabet attributed the capex increase primarily to an acceleration in delivery of capacity to meet growing demand, a rationale MarketBeat Ratings links to the likelihood of faster AI infrastructure rollouts that could boost demand for Broadcom-linked products. The article notes Alphabet shares fell after results, but frames the spending guidance as a positive demand signal for Broadcom despite the near-term market reaction.