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AI Capex Soars With Alphabet’s $175–$185 Billion Plan as Nvidia Shares Stall Before Feb. 25 Earnings

Investors have shifted to demanding near‑term profit clarity despite record infrastructure commitments from hyperscalers.

Overview

  • Alphabet told investors to expect $175 billion to $185 billion in 2026 capital spending, reinforcing a renewed AI infrastructure buildout that benefits chip and data‑center suppliers.
  • Nvidia is roughly flat to negative year‑to‑date even with an estimated 80%–90% share in AI training GPUs, reflecting concerns about competition and the need for clearer earnings visibility.
  • Reuters reports major tech valuations have fallen this year as markets move from rewarding long‑term AI ambitions to prioritizing immediate results and guidance.
  • Broadcom said AI semiconductor revenue jumped 74% year over year to about $6.2 billion and guided Q1 to $8.2 billion, highlighting rising demand for custom accelerators and AI Ethernet switches.
  • Nvidia will report fiscal Q4 results on Feb. 25, with guidance viewed as the key catalyst; the company is also promoting next‑generation Rubin/Vera Rubin architectures it says deliver major efficiency gains over Blackwell.