Alphabet lifts 2026 and 2027 capital spending outlook to $205 billion

According to CNBC, Alphabet raised its capital spending forecast for 2026 and 2027 last week, citing supply constraints amid surging demand for computing power. The company said 2026 capex could rise to as much as $205 billion from $190 billion, and shares fell Thursday after the announcement. Investors and analysts said a meaningful cut in hyperscaler spending could pressure markets, while JPMorgan traders warned that a capex cut or smaller buyback would push them toward a more bearish view. Steve Eisman and Paul Meeks both said a spending pullback would be a negative signal for demand, and Meeks said Wall Street is expecting about $260 billion in Alphabet capex in 2027. The spending outlook follows Alphabet's $80 billion equity raise in June, which Wells Fargo said resulted in very modest 2% stock dilution.