US Markets
Home›US Markets›Sectors›Alphabet lifts 2026 capex outlook to fund more AI infr…
Alphabet lifts 2026 capex outlook to fund more AI infrastructure
Alphabet now expects 2026 capital spending of $195 billion to $205 billion, up from $180 billion to $190 billion, with most of the increase tied to expanding AI infrastructure capacity.
Alphabet, the parent of Google, has raised its 2026 capital spending forecast again to a range of $195 billion to $205 billion, according to Yahoo Finance. The company previously guided for $180 billion to $190 billion.
The updated outlook directs most of the incremental investment toward expanding AI infrastructure. Yahoo Finance notes that this comes as investors have grown cautious after Alphabet reported free cash flow turned negative last quarter, but the higher spending underscores ongoing demand for AI computing power.
The increased capex is expected to benefit suppliers that support AI infrastructure buildouts. Yahoo Finance highlights Lumentum Holdings for optical networking components used to move data across AI data centers, and Celestica for advanced electronics manufacturing and networking infrastructure used by hyperscale customers.
Not all AI-related suppliers share the same optimism. Yahoo Finance says Broadcom has concerns it could lose some tensor processing unit business to MediaTek, and it cites that investors are becoming more selective as Alphabet commits more capital to AI.