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● LIVE Updated 3h ago · 13 sources tracked

Alphabet Says Its AI Spending Will Keep Rising. 2 Data Center Stocks to Buy and Hold Through 2030.

Alphabet plans to increase its artificial intelligence spending into 2027, according to reports from The Motley Fool and MarketSpy. This spending surge has contributed to record Cloud sales, though it has negatively impacted cash flow. Alphabet's 12-month free cash flow dropped 73% to $19.7 billion. While the company outspends Microsoft to expand cloud capacity, its efforts to challenge Nvidia with internal chips have created a heavy cost to cash flow. Analysts suggest this trend benefits specific data center suppliers through 2030.

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  • ✓ Alphabet's 12-month free cash flow fell 73% to $19.7 billion.
  • ✓ Google is outspending Microsoft to expand its cloud capacity.
  • ✓ Alphabet's efforts to challenge Nvidia have resulted in record Cloud sales but higher costs to cash flow.
  • ✓ Alphabet has indicated that its AI capital spending will continue to grow.
🛡️ Source Corroboration: 13 independent reporting domains (85% confidence) ⏱ Read time: ~2 min

What changed

Alphabet signaled that AI capital spending will continue to grow and may increase further in 2027.

Live updates

  1. Alphabet Signals Continued Growth in AI Capital Spending

    Alphabet plans to increase its artificial intelligence spending into 2027, according to reports from The Motley Fool and MarketSpy. This spending surge has contributed to record Cloud sales, though it has negatively impacted cash flow. Alphabet's 12-month free cash flow dropped 73% to $19.7 billion. While the company outspends Microsoft to expand cloud capacity, its efforts to challenge Nvidia with internal chips have created a heavy cost to cash flow. Analysts suggest this trend benefits specific data center suppliers through 2030.

    Why it matters

    Alphabet is competing in a high-stakes race to expand cloud capacity against rivals like Microsoft. The company is balancing the need for massive infrastructure investment against investor scrutiny over capital discipline. This strategy involves developing proprietary hardware to reduce reliance on Nvidia.

    What is confirmed

    • Alphabet's 12-month free cash flow fell 73% to $19.7 billion.
    • Google is outspending Microsoft to expand its cloud capacity.
    • Alphabet's efforts to challenge Nvidia have resulted in record Cloud sales but higher costs to cash flow.
    • Alphabet has indicated that its AI capital spending will continue to grow.

    Still unconfirmed

    • Alphabet posted negative free cash flow for two consecutive quarters with AI spending reaching $51.4 billion.

    What to watch next

    • Alphabet's 2027 capital expenditure budget disclosures
    • Quarterly free cash flow recovery or further decline
    • Market performance of the two data center stocks identified by The Motley Fool
    Sources used for this update (13)
    1. www.fool.com — Alphabet Says Its AI Spending Will Keep Rising. 2 Data Center Stocks to Buy and Hold Through 2030.
    2. The Motley Fool — Alphabet Says Its AI Spending Will Keep Rising. 2 Data Center Stocks to Buy and Hold Through 2030.
    3. Yahoo Finance — Is Alphabet's Massive AI Spending a Problem? The CFO Just Revealed Everything Investors Need to Know in a Single Sentence.
    4. Ad-hoc-news.de — Alphabet's Capital Discipline Faces Its Toughest Test Yet
    5. Channel Dive — Google outspends Microsoft in race to expand cloud capacity
    6. The News International — Google's direct Nvidia challenge pays off with record Cloud sales, at a heavy cost to cash flow
    7. FourWeekMBA — Google’s 12-Month Free Cash Flow Falls 73% to $19.7 Billion
    8. ET Manufacturing — Google's Nvidia chip challenge boosts cloud sales, crimps cash flow
    9. www.straitstimes.com — AI spending boom: Big Tech unlikely to slow down despite ...
    10. uk.finance.yahoo.com — Stock market today: Dow surges 1,500 points in best day of 2026, S&P 500 and Nasdaq rally after historic midterm election
    11. marketspy.com — Alphabet's AI Spending Surge Points to Data Center Stocks
    12. www.geopoliticsalpha.com — Alphabet Says Its AI Spending Will Keep Rising. 2 Data Center ...
    confidence 85%
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