Google and Microsoft Bid for SoftBank U.S. Data Center
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy GOOG?
Google (GOOGL) and Microsoft (MSFT) are set to participate in bidding to lease a new SoftBank (SFTBY) U.S. data center, with a decision expected as soon as this month, Nikkei Asia's Yusuke Yagi and Natsuki Yamamoto report.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 337.750
Low
255.00
Averages
336.08
High
400.00
Current: 337.750
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capital Expenditure Surge: Alphabet anticipates capital expenditures between $175 billion and $185 billion in 2026, nearly doubling from $91.4 billion in 2025, a significant investment aimed at maintaining its competitive edge in AI, but it also raises the stock's risk profile.
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See More
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- Growth in Advertising and Cloud: Alphabet's ad network and cloud platform achieved a 15% sales growth in 2025, with Google Cloud's revenue growing 48% year-over-year in Q4, yielding $5.3 billion in operating income, further solidifying its market position in the AI sector.
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- Long-Term Strategic Vision: With ample cash and resources, Alphabet can afford to make long-term investments in AI, similar to the decade-long wait for Google Cloud to become profitable, indicating its patience and strategic foresight in emerging technologies.
See More
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- Salesforce's Growth Potential: Despite a 20% drop in Salesforce's stock price, its Q4 2026 sales rose 12% to $11.2 billion, with EPS increasing 37% to $3.81, demonstrating resilience and market demand in the AI era.
- Alphabet's Gemini Advantage: Alphabet's Gemini has gained over 750 million monthly active users and is expected to boost annual revenue by $1 billion through collaboration with Apple's new Siri version, further solidifying its competitive position in the AI market.
- Capital Expenditure and Future Growth: Alphabet plans to invest up to $185 billion this year in AI infrastructure, driving Google Cloud sales to grow 48% to $17.7 billion in Q4, indicating significant future growth in AI revenue.
See More
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- Salesforce's Growth Potential: Despite a 20% drop in stock price, Salesforce's Q4 2026 sales rose 12% to $11.2 billion, with earnings per share increasing 37% to $3.81, demonstrating its resilience and ongoing progress in AI strategy.
- Alphabet's Cloud Sales Surge: Alphabet's Google Cloud sales increased by 48% to $17.7 billion in Q4, driven by rising AI revenue, and it is expected to receive $1 billion annually from Apple, further solidifying its market position.
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See More
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- Microsoft's AI Strategy: Microsoft has invested approximately 27% in AI and quickly integrated ChatGPT models into its Copilot service, demonstrating its adaptability in the AI era, which is expected to continue attracting enterprise customers and maintain market leadership.
- Salesforce's Growth Potential: Despite a 20% drop in stock price, Salesforce reported a 12% increase in sales to $11.2 billion and a 37% rise in earnings per share to $3.81 in Q4 2026, indicating strategic progress in AI and a solid customer base.
- Alphabet's Competitive Edge: Alphabet's Google Gemini is rapidly gaining traction with over 750 million monthly active users and is expected to generate $1 billion annually through a partnership with Apple, further solidifying its position in the AI market.
See More
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- Capex Focus: Meta's capital expenditure is projected to reach $115 billion to $135 billion for 2026, representing at least a 59% year-over-year increase, which could significantly impact market expectations for profitability and lead to stock price volatility.
- Microsoft's Investment Plans: Microsoft is set to spend approximately $146 billion on AI and cloud infrastructure in fiscal 2026, and this substantial investment will influence investor confidence in its future growth, potentially triggering market reactions.
- Bitcoin-Nasdaq Correlation: Bitcoin's average correlation with the Nasdaq 100 rose to 0.52 in 2025 and further increased to 0.75 in early 2026, indicating that Bitcoin's price may be directly affected by the performance of tech stocks due to this close relationship.
- Market Reaction Expectations: If any of the five tech companies report disappointing capital expenditure results, it could lead to a decline in Bitcoin prices; conversely, strong earnings could enhance risk appetite and drive both equity and crypto markets higher.
See More
