Alphabet Says Its AI Spending Will Keep Rising. 2 Data Center Stocks to Buy and Hold Through 2030.

Key Points:

• Alphabet spent $51.4 billion on capital projects in Q3 2026 to expand its AI infrastructure, more than doubling its spending from a year earlier, and expects to increase spending significantly in 2027 with a 2026 target range of $195 billion to $205 billion.
• Microsoft reported $45.2 billion in capital spending for its fiscal Q1 ending September 30, below its $50 billion guidance due to delayed third-party capacity, but anticipates accelerated spending in the latter half of its fiscal year focused on CPUs and GPUs.
• Nvidia, a major chip supplier for AI infrastructure, saw its fiscal Q2 2027 revenue surge 106% year-over-year to $96.2 billion, with guidance for further growth, though sequential growth rates are slowing; Nvidia remains a key beneficiary of rising AI-related capital expenditures.
• Vertiv, which supplies power and cooling equipment for data centers, reported a 61% year-over-year increase in Q3 net sales and raised its 2026 earnings forecast, but its stock trades at a higher price-to-earnings ratio than Nvidia and will stop reporting orders data.
• Analysts suggest Nvidia may be a more attractive investment given its lower valuation relative to expected earnings and its central role in AI infrastructure spending, while Vertiv could be considered for a smaller position despite strong growth.