Alphabet’s AI Buildout And Waymo Funding Reshape Long Term Investment Case

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• Alphabet (NasdaqGS:GOOGL) outlines plans to lift 2026 capital expenditures to about US$175b to US$185b, focused on AI infrastructure including data centers, custom chips, and clean energy.

• The company reports growing adoption of its Gemini AI platform, including expected integration work with Apple for Siri and faster user uptake across products.

• Waymo, Alphabet’s autonomous driving unit, secures US$16b in new funding at a US$126b valuation to support robotaxi expansion into additional cities.

Alphabet sits at the center of several major tech shifts, from large scale AI models to cloud computing and autonomous vehicles. For investors tracking NasdaqGS:GOOGL, the combination of AI infrastructure buildout, Gemini adoption, and Waymo’s funding points to a company leaning further into capital intensive, data heavy businesses that touch multiple parts of the global economy.

Looking ahead, the scale of planned AI and cloud spending, plus Waymo’s expansion plans, could influence how you think about Alphabet’s risk profile, cash needs, and competitive position. The key questions are how effectively the company turns this infrastructure and funding into usage, monetization, and advantages across search, cloud, and mobility services.

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Why Alphabet could be great value

• ⚖️ Price vs Analyst Target: At US$322.86 versus a US$367.77 analyst target, the price is about 12% below consensus, which is slightly outside the 10% band.

• ⚖️ Simply Wall St Valuation: The shares are described as trading close to estimated fair value, so expectations already reflect a lot of good news.

• ❌ Recent Momentum: The 30 day return is about a 1.7% decline, which signals soft short term sentiment.

Check out Simply Wall St’s in depth valuation analysis for Alphabet.

• 📊 The AI infrastructure ramp and Waymo funding reinforce Alphabet’s push into capital heavy, data centric businesses. This could shape how you view its long term cash needs.

• 📊 Watch how AI capex affects free cash flow, the take up of Gemini across products, and any revenue contribution Waymo discloses as robotaxi services reach more cities.

• ⚠️ Simply Wall St flags a high level of non cash earnings, so you may want to focus on cash flow and cash based profitability while spending rises.

For the full picture including more risks and rewards, check out the complete Alphabet analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GOOGL.

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