"Alphabet ( NASDAQ:GOOG )( NASDAQ:GOOGL ) reported fourth-quarter earnings that exceeded analyst estimates, with full-year revenue exceeding $400 billion for the first time ever. However, the tech stock's guidance for 2026 capital expenditures, ranging from $175 billion to $185 billion - nearly double the $91.4 billion spent in 2025 - raised concerns about profitability amid intense AI infrastructure demands. This outlook triggered a volatile stock reaction, with shares dropping over 6% initially in after-hours trading, recovering to a 2% gain during the earnings call,"
"Broadcom stands to benefit significantly from Alphabet's aggressive capital spending plans, given its established role as a supplier in Google's Tensor Processing Unit program. The company's custom AI chips, or XPUs, are integral to handling AI workloads in data centers, and analysts forecast that shipments related to Google's TPUs could reach 7 million units by 2028, potentially driving Broadcom's AI ASIC revenue to $78.4 billion in 2027. With Alphabet's capex focused on scaling AI compute and infrastructure,"
Alphabet reported Q4 earnings that exceeded estimates and recorded over $400 billion in full-year revenue for the first time. Alphabet guided 2026 capital expenditures of $175–$185 billion, nearly double 2025's $91.4 billion, raising concerns about profitability amid AI infrastructure demands. The guidance caused volatile stock moves, initially dropping over 6% after-hours, briefly recovering during the earnings call, and closing down about 2%. Broadcom stands to benefit as a supplier to Google's Tensor Processing Unit program; analysts forecast TPU-related shipments could reach 7 million units by 2028. Broadcom's Q4 AI semiconductor revenue was $6.5 billion, up 74% year-over-year, positioning it to capture part of a projected 50% increase in data-center capital spending for 2026.
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