Google goes all-in on $85B AI spending spree — ride the infrastructure boom via Nvidia
Google's parent company, Alphabet, just increased its fundraising to a massive $85 billion specifically to fund its artificial intelligence expansion. At the same time, AI chip giant Nvidia is reporting incredible profits, and JPMorgan analysts say this massive tech spending is going to drive an 'earnings supercycle' for AI-related stocks.
Idea
The biggest tech companies are in an arms race to dominate artificial intelligence, and they are spending unprecedented amounts of money to do it. Alphabet increasing its war chest to $85 billion signals that this spending boom is actually accelerating, not slowing down. As these tech giants build out AI infrastructure, they are buying hardware and software at record rates, directly enriching suppliers like Nvidia. JPMorgan believes this massive spending will translate into a 'supercycle' of growing profits that pushes these stocks higher.