Nvidia Hits New Peak as Google Boosts Cloud Spending Forecast

Nvidia (NVDA) hit a fresh intraday high, up 0.5% to $174.53, driven by Alphabet's (GOOGL) 13% increase in its 2025 capital-expenditure forecast to $85 billion, signaling more server and data-center builds, including Nvidia's gear. Google touts custom TPUs but backs GPUs for broader cloud needs. Nvidia's stocks may remain unstable, but the boom in AI infrastructure does not appear to have reached its limit.

Title: Nvidia's Stock Rises on Alphabet's AI Infrastructure Investment Plans

Nvidia (NVDA) saw its stock price climb to a new intraday high, up by 0.5% to $174.53, following Alphabet Inc.'s (GOOGL) announcement of a 13% increase in its 2025 capital expenditure (capex) forecast to $85 billion. This increase, which was announced on July 23, 2025, signals a significant boost in Alphabet's spending on server and data-center builds, including Nvidia's gear. The move is part of Alphabet's broader strategy to bolster its AI infrastructure and stay competitive in the rapidly evolving AI market.

Alphabet's decision to raise its capex guidance by $10 billion is a clear indication of the company's commitment to investing in AI technologies. The increase is expected to support the ongoing development of AI-driven products and infrastructure, particularly in the Cloud segment, which saw a near 32% growth in sales during the second quarter of 2025 [2]. The company's strong performance in the second quarter, with total revenue rising by 13.8% year-over-year (YoY) to $96.43 billion, underscores the growing demand for AI capabilities and the potential for significant returns on these investments [2].

Nvidia, a key player in the AI hardware market, stands to benefit from Alphabet's increased spending on AI infrastructure. The company's custom TPUs (Tensor Processing Units) have been gaining traction, but the broader demand for GPUs (Graphics Processing Units) in cloud computing remains robust. Nvidia's GPUs are widely used for training large language models and other AI tasks, making them a critical component in the AI infrastructure build-out [1].

While Alphabet's increased capex is expected to put pressure on near-term profitability due to higher depreciation and operating expenses, the long-term benefits are likely to be substantial. The company's strong performance in AI-driven segments, such as Google Search and YouTube, suggests that the investment in AI infrastructure is paying off. Moreover, the addition of Google Cloud to OpenAI's list of cloud capacity suppliers further underscores the demand for AI capabilities and the need for robust infrastructure to support them [1].

Looking ahead, the AI infrastructure boom does not appear to have reached its limit. The increasing demand for AI technologies, driven by both enterprise and consumer applications, suggests that there is significant potential for growth in this sector. Nvidia's position as a leading provider of AI hardware, combined with Alphabet's substantial investment in AI infrastructure, positions the company well to capitalize on this growth.

References:
[1] https://www.reuters.com/business/google-parent-alphabet-surprises-with-capital-spending-boost-after-earnings-beat-2025-07-23/
[2] https://www.ainvest.com/news/alphabet-surpasses-expectations-13-8-yoy-revenue-growth-strong-cloud-youtube-performance-2507/