Alphabet's AI Infrastructure Spending Drags GOOGL But Fuels Broadcom and NVIDIA Gains

Alphabet (GOOGL-US) raised its 2026 AI infrastructure capital spending to $175B–$185B, up from $910B–$930B in 2025,拖累 its shares but spurring its chip supply chain. Broadcom (AVGO-US) rose 0.8% on the news as it is a TPU developer partner and could see AI compute demand grow. The company expects AI data center construction and related equipment to drive the increase. Bank of America Securities estimates Broadcom's AI compute revenue from Google projects could exceed 80%, and Jefferies analyst Blayne Curtis projects potential revenue through 2027 of about $800B, with Broadcom likely to supply 85%–90% of TPUs. Competition includes TSMC and MediaTek. NVIDIA (NVDA-US) fell 1.3% as Alphabet serves clients with both its Ironwood TPU and NVIDIA GPUs, highlighting continued strength in the AI infrastructure spending race.