From Nasdaq: 2025-02-18 05:30:00

Alphabet’s CFO, Anat Ashkenazi, hints at increased capital investments in 2025, following a $52.5 billion spend in 2024. Wall Street analysts expected $58 billion in capital expenditures, but Alphabet plans to allocate $75 billion, primarily for AI infrastructure.

Alphabet’s heavy investment in AI infrastructure aims to support Google Cloud growth, with 2024 revenue reaching $69 billion. Despite increased spending in 2025, strong free cash flow and potential returns to shareholders position Alphabet as a lucrative stock for long-term investors.

Alphabet’s AI investments are already showing results, with Google Cloud expected to see strong growth in 2025. The company’s focus on AI-powered improvements in search and advertising could drive core business growth and offset increased spending on data centers.

Investors should consider Alphabet’s robust capital return programs and strong free cash flow generation when evaluating the stock. With shares trading at a discount and potential for long-term growth, Alphabet remains a favorable pick for those looking to invest for the future.



Read more at Nasdaq: Alphabet Will Spend $75 Billion on Artificial Intelligence (AI) in 2025, but It Spent $69 Billion on Something Else Entirely in 2024 That Makes It Worth Buying and Holding Forever