Alphabet's $15B Capex Hike to $205B Seen Boosting European Electricals
GOOG sits 75% above its 52-week low of $188.495.
Summary
Alphabet raised its 2026 capex guidance by $15 billion to a range of $195–$205 billion, and signaled further significant increases in 2027. Citi analysts see this as a strong demand signal for European electrical equipment makers like Legrand, Schneider Electric, and Halma, which supply data center infrastructure. The capex hike was disclosed alongside Q2 earnings, and the 18-month lead times suggest order strength through at least H2 2026. Citi expects Legrand and Schneider to raise their own 2026 organic revenue guidance. Halma may also benefit from Alphabet's TPU chip comments, though the relationship to its optical control switch revenues remains opaque. This follows Alphabet's earlier $700 billion capex plan announced in May, reinforcing the scale of its AI infrastructure build-out.
At the time of this announcement, GOOG was trading at $329.60 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.2T. The 52-week trading range was $188.50 to $404.47. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.