Alphabet plans to increase capital expenditures to $85 billion this year and accelerate spending next year, with a focus on AI infrastructure including servers and cloud computing. Rising AI infrastructure spending benefits Nvidia, positioning it well for growth in the GPU market.

Alphabet reported strong Q2 results, with a focus on AI infrastructure spending. Nvidia stands to benefit from Alphabet’s increased capex, as it aligns with industry forecasts predicting significant growth in AI hardware spending.

McKinsey forecasts $6.7 trillion in AI infrastructure spending by 2030, with significant contributions to GDP. Nvidia’s market dominance and Alphabet’s increased spending signal positive trends for Nvidia’s GPU business, positioning it as a key player in the industry.

Nvidia, the world’s most valuable company, has a forward P/E multiple of 40, suggesting a strong growth trajectory. Investors should consider buying Nvidia stock, especially with Alphabet’s rising AI infrastructure spending as a long-term catalyst for growth.

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Read more at Nasdaq: Alphabet Just Gave Nvidia Investors Some Great News