# Google raises $85 billion for AI while hardware stocks sell off — buy the dip in server and chip suppliers

_AI-generated trading idea · LONG · AVGO, NVDA, SMCI_

> Canonical page: https://commonquant.ai/research/for-you/google-raises-85-billion-for-ai-while-hardware-stocks-sell-o--d6788683-12e2-4340-b1f6-c0e2babb4638

Google's parent company Alphabet just increased its fundraising target to a massive $85 billion specifically to build artificial intelligence infrastructure. Meanwhile, the companies that supply the actual hardware for this buildout are seeing their stock prices fall, creating a gap between immense demand and supplier stock prices.

## Idea

The biggest tech companies in the world are making historic financial commitments to build out artificial intelligence, with Alphabet alone raising $85 billion in fresh cash to fund the race. Despite this massive tidal wave of guaranteed demand for computer hardware, equipment suppliers like Super Micro Computer have seen their stocks drop sharply in recent days. This divergence between booming customer spending and falling supplier stocks does not make sense long-term. As these multi-billion dollar budgets actually get spent, the companies providing the servers, chips, and networking gear stand to capture massive revenue. Buying the hardware suppliers while they are temporarily out of favor offers a highly attractive entry point.

## Key details

- Symbols: AVGO, NVDA, SMCI
- Timeframes: daily
- Tags: \#stocks, \#ai, \#value

## Community

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## News sources

- [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
- [Super Micro Computer Sinks 9%, Gorilla Technology Tumbles 20% Despite $2 Billion India AI Infrastructure Deal](https://finance.yahoo.com/markets/stocks/articles/super-micro-computer-sinks-9-173757582.html) — Yahoo Finance

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