google launches amazon while microsoft expands its platform

Key Takeaways

• Alphabet plans to double its AI capital spending to between $175 billion and $185 billion by 2026, despite CEO Sundar Pichai's concerns about compute capacity and supply chain limits.
• Amazon is investing $200 billion in AI this year, making it the most aggressive spender among major tech giants, and is developing custom AI chips like Trainium3 to reduce costs.
• Stifel downgraded Microsoft's stock due to heavy AI spending, Azure supply issues, and increased competition from Google Cloud and Anthropic, expecting Azure's profit margins to shrink.
• Qualcomm's shares fell 11% after warning that rising memory prices, driven by AI data center demand, will slow the smartphone industry and impact its Q2 revenue.
• Nvidia's stock dropped 10% following reports that a $100 billion deal with OpenAI for chips was "non-binding" and "not finalized."
• AMD plunged over 17% due to a weak Q1 sales forecast, while Super Micro Computer rose over 13% on strong Q3 net sales predictions.
• Vertiv, specializing in cooling AI data centers, has a $7.1 billion backlog and plans to increase R&D spending by over 20% in 2026, aligning with Nvidia's future platforms.
• Globant, an AI stock, reported $617.1 million in Q3 2025 revenue and $67.5 million in free cash flow, demonstrating disciplined growth with its Enterprise AI platform.
• Wolfe Research upgraded Zoom, citing reaccelerating growth from Zoom Contact Center, Zoom Phone, and emerging Voice AI monetization, with significant cash reserves for M&A.
• Major tech companies like Meta, Google, and Microsoft are collectively expected to spend around $650 billion on AI this year.

Alphabet Doubles AI Spending to $185 Billion by 2026

Alphabet announced it plans to spend between $175 billion and $185 billion on capital expenditures in 2026. This amount is more than double its 2025 spending. CFO Anat Ashkenazi stated the money will boost AI compute capacity for Google DeepMind and meet high cloud customer demand. It will also improve Google services and advertiser returns. Google's cloud unit saw its backlog jump to $240 billion in Q4, with cloud revenue up 48%. CEO Sundar Pichai noted that compute capacity, power, land, and supply chain issues are major concerns.

Alphabet Plans Huge AI Spending But CEO Worries

Alphabet plans to double its capital spending to potentially $185 billion, mainly for AI infrastructure. CEO Sundar Pichai expressed concerns about compute capacity, power, land, and supply chain limits. Despite these worries, Alphabet beat Q4 2025 profit and revenue goals, achieving over $400 billion in annual revenue. CFO Anat Ashkenazi confirmed that AI investments are already showing results across the business. The company's cloud backlog increased by 55% to $240 billion in Q4, showing strong demand for AI services.

Qualcomm Shares Drop as AI Boosts Memory Prices

Qualcomm's share price fell 11% after the company warned that rising memory prices will slow the smartphone industry. CEO Cristiano Amon reported a record $12.3 billion in Q1 2026 revenue, but noted that memory makers are prioritizing AI data centers. This shift is causing DRAM prices to soar and limiting availability for smartphones. As a result, many handset makers, especially in China, are reducing their inventory and production plans. Qualcomm expects its Q2 revenue to drop to $10.2 billion to $11 billion, with handset chip sales falling to $6 billion. The company is also shipping its own AI silicon and sees future growth in robots, cars, and patent licensing to reduce reliance on smartphones by 2029.

Globant Offers Steady AI Growth for Smart Investors

Globant, an AI stock, shows disciplined growth and real AI adoption by embedding AI into its core business while maintaining profits. In Q3 2025, the company reported $617.1 million in revenue and $67.5 million in free cash flow, growing without burning cash. Globant has a diverse customer base, with no single client accounting for more than 8.7% of revenue. In October 2025, it released version 2.3 of its Enterprise AI platform, featuring the Agentic Commerce Protocol, which allows AI systems to perform real tasks. Globant was also recognized by Forbes in January 2026 as one of America's Best and Most Trusted Companies.

Stifel Downgrades Microsoft Due to AI Spending and Azure Worries

Stifel downgraded Microsoft's stock from buy to hold, lowering its price target to $392 from $540. Analyst Brad Reback believes heavy AI spending and competition will limit Microsoft's near-term growth. He cited Azure supply issues, strong Google Cloud Platform Gemini results, and Anthropic's momentum as reasons why Azure's growth may not accelerate soon. Reback also expects Azure's profit margins to shrink due to high capital expenditures and increased AI research and development costs. Microsoft's stock recently dipped 10% after its fiscal third-quarter operating margin guidance and cloud growth fell below expectations.

Wolfe Upgrades Zoom Citing Stronger AI Growth

Wolfe Research upgraded Zoom Communications to outperform, setting a new price target of $115. Analyst Alex Zukin believes Zoom's growth profile is set to reaccelerate, driven by strong performance in Zoom Contact Center and Zoom Phone. Emerging monetization from Voice AI is also improving the company's growth durability. Zoom has rallied 9% this year and 26% over the past six months, outperforming other software stocks. With about $8 billion in net cash and more expected, Zoom has funds for mergers and acquisitions in areas like Voice AI. The stock trades at a discount, suggesting it is undervalued given its platform expansion and AI potential.

Chipmakers and AI Stocks Fall as Market Dips

The broader market saw stock indexes settle mixed, with the S&P 500 and Nasdaq 100 hitting multi-week lows. Investors moved away from high-performing chipmakers and AI stocks. Advanced Micro Devices plunged over 17% due to a weak Q1 sales forecast. In contrast, Super Micro Computer rose over 13% after strong Q3 net sales predictions, and Amgen gained over 8% on better-than-expected Q4 revenue. The US government shutdown ended, and the Treasury announced a $125 billion quarterly refunding.

Vertiv Aims to Cool AI Data Centers for Big Returns

Vertiv is emerging as a key AI infrastructure company, specializing in thermal management and liquid-cooling systems for high-performance data centers. The company has strong revenue visibility through 2026, with a $7.1 billion backlog and 85% of its 2026 revenue already secured. Vertiv's services, including predictive analytics and remote monitoring, help build lasting customer relationships and create recurring revenue. The company plans to increase R&D spending by over 20% in 2026 and will launch an 800-volt direct current portfolio in the second half of 2026, aligning with Nvidia's future platforms.

Amazon Boosts AI Spending to $200 Billion Shares Fall

Amazon announced a significant increase in its spending on artificial intelligence projects and infrastructure, planning to invest $200 billion this year. This is a substantial jump from the $125 billion spent last year. Despite the ambitious plans, Amazon's stock dipped 10% in after-hours trading. The company's AI spending is now the most aggressive among major tech giants like Meta, Google, and Microsoft, who collectively expect to spend around $650 billion on AI this year.

Nvidia OpenAI $100 Billion Deal Disappears

A reported $100 billion deal between Nvidia and OpenAI appears to have collapsed, raising questions about AI funding. The deal was said to be a circular arrangement where Nvidia would fund OpenAI to buy its own chips. Nvidia CEO Jensen Huang stated the deal was "non-binding" and "not finalized," and that any investment would be much smaller. Reports also suggested OpenAI was "unsatisfied" with Nvidia's chips and looking for alternatives, causing Nvidia's stock to drop 10%. Both companies are now downplaying the situation, with OpenAI's CEO Sam Altman affirming their strong relationship with Nvidia. Analysts suggest OpenAI's rapid growth means it cannot rely on a single chip vendor.

Amazon Creates Custom AI Chips to Lower Costs

Amazon is developing its own custom AI chips, like Trainium3, to make AI cheaper for customers and reduce electricity use in data centers. This strategy is crucial for Amazon Web Services (AWS) to maintain its cloud leadership and boost its stock. AWS vice president David Brown emphasized that price performance is a key metric for customers. While AWS's revenue growth is strong, competitors like Microsoft Azure and Google Cloud are growing faster. Amazon's custom chip efforts began with the 2015 acquisition of Annapurna Labs, leading to the development of Graviton CPUs and AI accelerators designed for cloud and AI workloads.

Sources

• Alphabet resets the bar for AI infrastructure spending
• Alphabet is confident about plans to double capex spending to a possible $185 billion—but it’s keeping CEO Sundar Pichai up at night
• AI’s lust for memory drags down the smartphone industry, and Qualcomm with it
• This Forgotten AI Stock is Exactly What Long-Term Investors Want
• Stifel downgrades Microsoft, says AI spending and Azure concerns could limit near-term upside
• Wolfe upgrades Zoom, citing improved growth profile and AI monetization
• Broader Market Falls as Chipmakers and AI Stocks Tumble
• The Secret AI Infrastructure Stock That Could Turn $1,000 Into a Fortune
• Amazon plans to spend big on AI but shares slump
• What does the disappearance of a $100bn deal mean for the AI economy?
• Amazon's push to make AI cheaper — and why it matters to reigniting the stock