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Alphabet’s AI Momentum Builds With Big 2026 Capex and Gains for Gemini

An investor note credits Alphabet’s vertical stack with strengthening its long‑term AI position.

Overview

  • Alphabet reported 2025 revenue of $402.8 billion, up 15%, with operating income near $130 billion, a 32% margin, and earnings per share of $10.81, up 34%.
  • The company guided 2026 capital spending to $175–$185 billion, topping expectations due to data center buildouts.
  • Menlo Ventures estimates cited in the article put enterprise LLM share at roughly 40% for Anthropic Claude, 27% and declining for ChatGPT, and 21% and rising for Google Gemini.
  • Anthropic is expanding use of Alphabet’s tensor processing units, which are developed with Broadcom and described as one of the few alternatives to Nvidia’s GPUs.
  • Yahoo Finance’s analysis presents Alphabet as a leading AI investment case, arguing that scale and resources position it to endure potential market volatility.