This Analyst Was Right About Alphabet (GOOG) CapEx

We recently published Trending Analyst Calls: 10 Stocks to Buy and Sell. Alphabet Inc (NASDAQ:GOOG) is one of the trending analyst calls.

Doug Clinton, Deepwater Asset Management, said in a recent program on CNBC that Wall Street’s estimates for Alphabet Inc (NASDAQ:GOOG) AI CapEx are too low. He expected the company to increase its AI CapEX.

“You look at the street numbers for capex for those two (GOOG, AMZN). Scott Google, it’s about 12% expected growth for next year’s capex. Amazon’s even lower. It’s high single digits and it’s almost unbelievable. You know, how could analysts sort of expect this? But I think the reality is if you look kind of more at Meta, that’s probably a better benchmark and they’re going to be growing kind of strong double digits, probably something like 30 to 40%. And I think you’ll see Google and Amazon both. It might not happen this call. They might sort of just indicate right that they’re going to continue to spend in this capex boom. But certainly as we get into Q4 earnings and projections for next year, I think those numbers need to go up significantly and that’s good for companies like Nvidia and TSM, both of which we also own.”

Alphabet on Wednesday reported strong quarterly results and increased its 2025 CapEX to a range of $91 billion to $93 billion, up from its previous target of $85 billion. The company also said it sees a major boost in CapEx in 2026.

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