#capex

#capex

Google stock has surged over 60% in the last twelve months, fueled primarily by the aggressive integration of Gemini AI across its search and cloud ecosystems. Historically, Alphabet is no stranger to such momentum; the stock has seen 30% rallies in under two months during 2010 and 2024, and even twice eclipsed 50% gains in brief windows throughout 2025. If these historical precedents hold, upcoming catalysts could once again propel the stock to record peaks, offering substantial upside for investors.

worrying investors that its colossal bet on artificial intelligence may not pay off in the long run. The company reported spending roughly $130 billion on property and equipment in 2025. Analysts anticipated those expenses would reach about $150 billion this year. Chief Executive Officer Andy Jassy said the money predominantly would go toward the company's Amazon Web Services cloud unit, and most of that spending would be for AI workloads.

Microsoft is facing capacity constraints, and OpenAI is driving a large portion of the backlog in its cloud computing business. The company said its backlog in commercial bookings, a metric referred to as remaining performance obligations, ballooned 110% year over year to $625 billion when it reported earnings for the second quarter on Wednesday. OpenAI accounts for roughly 45% of those commitments, Microsoft revealed.

But some analysts are starting to worry about how much of that growth is concentrated in AI.A recent note from Pantheon Macroeconomics said that private fixed investment-a measure of how much companies are spending-"is rising only due to AI-related spending." Analyst Oliver Allen published a chart this morning showing that all other private fixed investment is actually in decline: "Capex intentions remain depressed, suggesting investment outside of AI-linked sectors remains weak," he told clients in a note seen by Fortune.

Meta Platforms is likely to deliver one of the most closely watched quarterly reports of the upcoming earnings season. With the company spending heavily to transition the social media giant into a more artificial intelligence (AI)-focused operation, investors will have all the more reason to focus on the " Magnificent Seven" stock. Investors might recall the 20% gain in the stock following the release of the February 2024 numbers.