Alphabet Inc: Innovative Opportunities for Investors

Strong Comments from Analysts

Alphabet Inc (NASDAQ:GOOG) is becoming a favorite among investors. Doug Clinton from Deepwater Asset Management stated in a CNBC program that Wall Street's projections for Alphabet Inc's artificial intelligence capital expenditures (AI CapEx) are far too low. Clinton expects the company to increase its AI CapEx.

Clinton said, "Analysts are expecting capital expenditure growth for these two companies (GOOG, AMZN) to be around 12% for next year. Amazon has single-digit growth forecasts, which is nearly unbelievable. For a better comparison, if you look at Meta, there's growth of 30% to 40%." Clinton implied that Google and Amazon may not achieve these projections immediately, but they will continuously increase their spending over time.

Strong Quarterly Results

Alphabet announced strong quarterly results on Wednesday and raised its capital expenditure target for 2025 to a range of $91 billion to $93 billion. This figure exceeds the previously set $85 billion target. The company also expects a significant increase in capital expenditures for 2026.

While acknowledging GOOG's investment potential, it is believed that some artificial intelligence stocks offer more promise for higher returns and limited downside risk. If you are looking for an AI stock that benefits from Trump’s tariffs and local production, you can check out the free report on the best short-term AI stocks available.