Overview
- Alphabet guided 2026 capital spending to $175 billion–$185 billion, signaling sustained AI infrastructure outlays that should feed both Nvidia’s GPUs and Broadcom‑designed Google TPUs.
- A market re‑rating has knocked hundreds of billions off major tech names this year, with Microsoft, Amazon, Nvidia, Apple and Alphabet all down in value as investors question near‑term AI returns.
- Nvidia shares are roughly flat to negative year‑to‑date despite hyperscaler spend, while UBS lifted its price target to $245 ahead of the Feb. 25 earnings and GTC events as competition from TPUs, Trainium and AMD grows.
- Broadcom reported AI semiconductor revenue up 74% year over year to about $6.2 billion in Q4 and projected roughly $8.2 billion for Q1, boosted by custom accelerators and AI Ethernet switches and supported by a switch backlog above $10 billion.
- AMD’s data center segment grew 39% in Q4 to about $5.4 billion, and management outlined a multi‑year target for rapid expansion as Instinct accelerators and the ROCm ecosystem gain traction.