# Alphabet raising $85 billion for an AI arms race — ride the wave on Nvidia and chip stocks

_AI-generated trading idea · LONG · GOOG, NVDA, SMH_

> Canonical page: https://commonquant.ai/research/for-you/alphabet-raising-85-billion-for-an-ai-arms-race-ride-the-wav--187323bd-e998-4b61-befb-95a04941c717

Alphabet just increased its fundraising effort to a massive $85 billion specifically to pour into artificial intelligence. Meanwhile, the companies that build the actual hardware for AI, like Nvidia, are posting historic profits from this exact spending boom.

## Idea

Alphabet raising $85 billion to spend on AI proves that the biggest companies in the world are still in a massive arms race to build out this technology. This money doesn't just disappear; it flows directly to the infrastructure companies that manufacture the chips and servers, with Nvidia being the undisputed leader. Even though some investors are worried about a potential AI bubble, the actual cash being committed to these hardware purchases continues to accelerate. As long as tech giants are willing to spend tens of billions on AI hardware, the companies supplying the picks and shovels stand to keep winning.

## Key details

- Symbols: GOOG, NVDA, SMH
- Timeframes: 1D
- Tags: \#technology, \#ai\_infrastructure, \#momentum

## Community

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## News sources

- [Nvidia Has Racked Up a Nearly $20 Billion Profit Over the Last 5 Months From an Unlikely Source](https://finance.yahoo.com/markets/stocks/articles/nvidia-racked-nearly-20-billion-112600300.html) — Yahoo Finance
- [Alphabet Upsizes Equity Offering to $85 Billion for AI Spending](https://www.bloomberg.com/news/articles/2026-06-03/alphabet-upsizes-equity-offering-to-85-billion-for-ai-spending) — Bloomberg

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