Amazon and Alphabet Bet Big on AI. Why History Says It's Time to Buy Both Stocks

While Microsoft has backed off some leases recently with its data center buildout, both Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) look prepared to go full steam ahead.Microsoft still plans to spend around $80 billion on infrastructure capital expenditures (capex) for artificial intelligence (AI) this fiscal year, but its fiscal year ends in June, only a couple of months from now. However, it's pausing some early-stage projects, apparently because its needs and those of its AI partner OpenAI are moving in different directions. For its part, OpenAI is looking to build out its own capacity; it's part of Project Stargate, which plans to spend $500 billion on AI data centers over the next few years.However, Amazon and Alphabet both plan to spend big in 2025. Alphabet recently reiterated that it would spend $75 billion in data center capex this year, while Alphabet plans to spend around $100 billion. The potential impact of tariffs is not changing their plans.Continue reading

Apr 13, 2025 - 23:50

Amazon and Alphabet Bet Big on AI. Why History Says It's Time to Buy Both Stocks

While Microsoft has backed off some leases recently with its data center buildout, both Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) look prepared to go full steam ahead.

Microsoft still plans to spend around $80 billion on infrastructure capital expenditures (capex) for artificial intelligence (AI) this fiscal year, but its fiscal year ends in June, only a couple of months from now. However, it's pausing some early-stage projects, apparently because its needs and those of its AI partner OpenAI are moving in different directions. For its part, OpenAI is looking to build out its own capacity; it's part of Project Stargate, which plans to spend $500 billion on AI data centers over the next few years.

However, Amazon and Alphabet both plan to spend big in 2025. Alphabet recently reiterated that it would spend $75 billion in data center capex this year, while Alphabet plans to spend around $100 billion. The potential impact of tariffs is not changing their plans.