Alphabet goes all-in on $85 billion AI spending spree — buy the dip on Google
Google's parent company, Alphabet, just increased its fundraising goal to a massive $85 billion. The sole purpose of this giant cash raise is to pay for building out artificial intelligence technology.
Idea
Tech giants are in an arms race to build artificial intelligence, and Alphabet is aggressively raising $85 billion to ensure it doesn't fall behind. While issuing new shares can cause a stock's price to dip temporarily because there is suddenly more stock available, the massive investment is aimed at driving serious future growth. Historically, when major tech companies put this kind of cash behind a major trend, the underlying stock recovers strongly as new products and revenue streams materialize. Any short-term drop in Alphabet's stock price because of this fundraising could be a great opportunity to buy the dip before the AI spending pays off.