Alphabet Targets Higher AI Capex for 2026, Does This Make It a Buy?

Alphabet Inc. (NASDAQ:GOOG) is one of the 10 Best Internet Content and Information Stocks to Buy

Alphabet Inc. (NASDAQ:GOOG) is making strides in AI spending along with its counterparts. The company plans to target a Capex of $175 billion to $185 billion in 2026, up from $91.45 billion in 2025, far surpassing analyst estimates of over $115 billion. CEO Sundar Pichai has expressed his motive that AI investments and infrastructure are the key strategic moves for Alphabet as they are driving revenue and growth across the board.

Alphabet Targets Higher AI Capex for 2026, Does This Make It a Buy?

Google

On March 31, Google announced the launch of the latest version of its AI video model, Veo 3.1 Lite. This is Google’s most cost-effective video generation model, which is now available for developers through the Gemini API and Google AI Studio. The Veo AI model family offers more flexibility to developers based on needs. Veo 3.1 Lite is priced at $0.05/sec at 720p and $0.08/sec at 1080p, which costs significantly less than Veo 3.1 Fast’s current $0.15/sec rate. Despite the price difference, Veo 3.1 Lite matches Fast’s speed, supporting Text-to-Video and Image-to-Video in landscape and portrait formats with adjustment durations of 4, 6, and 8 seconds.

Google is also embedding AI across its product ecosystem. In other news, on March 11, Google announced a major expansion of its Gemini AI tool capabilities across its tools, including Docs, Sheets, Slides, and Drive. This positions Gemini as a core layer for content creation and data workflows with Google’s Workspace ecosystem. The latest Gemini features enhance the overall performance across Google content tools. For instance, Google mentioned a 70.48% success rate on SpreadsheetBench and over 9x faster data population for 100-cell tasks. The updated features are initially available to Gemini Alpha business and AI Pro & Ultra subscribers.

Alphabet Inc. (NASDAQ:GOOG) is a holding company that operates Google services such as search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also provides cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.

While we acknowledge the risk and potential of GOOG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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