Alphabet Capex Guidance Raised to $205 Billion as Google Cloud Backlog Hits $514 Billion

Earnings Impact 4
โดย The Motley Fool·US·Read original
Summary · why it matters

Alphabet raised its full-year capital expenditure guidance to as much as $205 billion in the same quarter that Google Cloud's backlog climbed to $514 billion. The company is pouring unprecedented sums into AI infrastructure, with roughly 60% of recent capital outlays going to servers and the remaining 40% to facilities and connectivity. CEO Sundar Pichai said about 90% of the Fortune 100 now use the company's Gemini Enterprise model, and customer acquisition is doubling year over year. Alphabet expects to recognize a little more than half of its current cloud backlog as revenue over the next 24 months, providing visibility into how much of the infrastructure being built is effectively presold. Google Cloud revenue accelerated 82% year over year in the second quarter, and the segment's operating margin expanded dramatically.

Impact on stocks 2

Artificial Intelligence▲ · 2 stocks
Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Alphabet raised capex guidance to $205B and reported strong cloud backlog growth, indicating robust investment and future revenue visibility.

NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Alphabet's increased AI infrastructure spending and cloud backlog growth signal strong demand for NVIDIA's GPUs, benefiting NVIDIA.

Theme Impact 8

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