Investor Outlook: Google DeepMind drives sharp jump in AI capex
BNN Bloomberg
Alphabet shares fell despite an earnings beat as investors focused on a sharp increase in AI capital spending and broader pressure on software stocks.
BNN Bloomberg spoke with Angelo Zino, senior equity analyst at CFRA Research, about what investors are reacting to in the results, how to interpret Alphabet’s aggressive AI investment strategy and the risks tied to rising capital expenditures across the tech sector.
Read the full transcript below:
LINDSAY: Alphabet plans to double its capital expenditures toward AI compute capacity. That comes amid growing market concern that AI tools could replace traditional software products. For more, we’re joined now by Angelo Zino, senior equity analyst at CFRA Research. It’s good to have you with us today. Thanks for taking the time.
ANGELO: Great. Thanks for having me.
LINDSAY: Before we get into some of the details Alphabet announced, what do you think investors are reacting to most in the latest earnings report?
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