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Alphabet Sets Massive AI Capex as Nvidia Posts Record Data‑Center Sales and Faces China Chip Report

Analysts point to resilient hyperscaler demand despite recent valuation swings.

Overview

  • Alphabet guided 2026 capital expenditures to $175 billion–$185 billion to expand AI and data‑center capacity, following Q4 2025 results that showed total revenue up 18% to $113.8 billion and Google Cloud up 48% to $17.7 billion with about a $240 billion backlog.
  • Nvidia reported roughly $68.1 billion in fiscal Q4 revenue with data‑center sales up about 75% and gross margins near 75%, reinforcing its leadership supported by a dominant discrete GPU share and the CUDA software ecosystem.
  • Reuters, citing the Financial Times, reported Nvidia halted H200 production for China and redirected capacity toward next‑generation Rubin/Vera Rubin hardware, a claim Reuters said it could not immediately verify.
  • Top analysts reiterated bullish views on Nvidia, with UBS maintaining a buy rating and a $245 target after meetings with management and Wedbush lifting its target to $300, citing strong networking ambitions, durable margins near 75%, and confidence in multi‑year compute buildouts.
  • Investor discussions continue to flag risks from hyperscaler customer concentration, competitive and geopolitical pressures, and stock volatility, even as Nvidia disclosed $40.1 billion in fiscal 2026 buybacks with about $58.5 billion remaining authorized.