OrdersCapital expenditure is enormous. Alphabet plans to spend roughly US$180–190 billion on AI infrastructure in 2026, and spending could rise further in 2027. This may pressure profit margins if AI revenue growth slows.
Forward P/E around the mid-20s is not cheap, but it is also not extreme for a company growing revenue above 20% and cloud revenue above 60%.
For a long-term investor (3–5 years), Alphabet looks like one of the stronger large-cap AI investments.
The biggest concern is not demand; it is whether the massive AI spending generates enough future profits to justify the investment.
it's my biggest holding so far.
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