Google released its results early Thursday morning, and the market is focused on whether its AI capital expenditure guidance will be raised significantly.

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Golden Finance News reported that on July 22, Google’s parent company Alphabet will release its second-quarter earnings after the U.S. stock market close on July 22 local time (early in Beijing time on July 23), but the market’s real focus is not single-quarter profit performance; rather, whether management will further raise its AI capital expenditure (Capex) guidance.
Robert Kasterlano, president of The Information Network, who has more than 40 years of experience researching the technology industry, wrote that multiple signals from the industry supply chain suggest Alphabet’s prior 2026 Capex expectation of $180 billion to $190 billion may already be on the conservative side. With AI data center construction continuing to accelerate and cloud computing demand maintaining strong growth, Alphabet’s AI infrastructure spending over the next several years is still likely to remain on an upward trend. Kasterlano expects that Alphabet may raise its 2026 capital expenditure guidance to $190 billion to $200 billion in its earnings report, while keeping the related statement about 2027 spending remaining close to $300 billion unchanged.
Meanwhile, Deutsche Bank has also significantly increased its forecast for Alphabet’s future capital expenditures. Deutsche Bank expects Alphabet’s 2027 Capex to reach about $325 billion, a clear increase from its prior forecast of $250 billion; and 2028 capital expenditures could further rise to between $365 billion and $370 billion.
If this trend materializes, it would mean that the AI infrastructure investment cycle is still expanding, and the market’s prior concerns that AI capital expenditures are about to peak and that growth momentum will slow may face a repricing again.
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