Is This the Most Overlooked Infrastructure Investment of the Decade? (Spoiler: It's Not a Data Center REIT)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 17 2025
0mins
Should l Buy GOOG?
Source: NASDAQ.COM
Nvidia's Dominance in AI: Nvidia is a leading producer of chips essential for artificial intelligence, with its stock rising significantly over the past decade, although its high price-to-earnings ratio raises concerns about future performance.
Growth of Data Centers: The demand for data centers, which house the computers running AI, is increasing, benefiting related industries such as data center REITs and companies providing building components and power management products.
Electricity Demand Surge: As AI and data centers expand, electricity demand is projected to grow significantly, with estimates suggesting a 55% increase from 2020 to 2040, making investments in electric utilities attractive.
Investment Options: Investors can capitalize on the growing electricity demand through individual utility stocks or diversified ETFs like the Vanguard Utilities ETF and Utilities Select Sector SPDR ETF, both of which offer similar performance and dividend yields.
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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: 395.140
Low
255.00
Averages
336.08
High
400.00
Current: 395.140
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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- Customer Concentration Risk: Microsoft's commercial remaining performance obligations (RPO) surged 99% to $627 billion, but 45% of this is tied to OpenAI; excluding OpenAI, growth was only 26%, indicating a reliance on a single customer that could impact future performance.
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- Market Competition: In the AI sector, companies like OpenAI, Microsoft, Google, and Amazon are vying for computing power; this move not only alleviates Anthropic's resource constraints but also potentially strengthens its competitive position within the industry.
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- Earnings Beat: Microsoft reported total revenue of $82.9 billion for Q3 2026, an 18% year-over-year increase, with operating income rising 20% to $38.4 billion; however, the stock is down 15%, indicating market concerns about future growth.
- Cloud Growth Stagnation: Azure's cloud services showed a 40% year-over-year growth rate but have remained flat for three consecutive quarters, while competitors Google Cloud and Amazon AWS reported significant accelerations at 63% and 28%, respectively, highlighting increased market competition.
- Customer Concentration Risk: Microsoft's commercial remaining performance obligations (RPO) surged 99% to $627 billion, but 45% of this is tied to OpenAI; excluding OpenAI, growth was only 26%, indicating a reliance on a single customer that could impact future performance.
- Surging Capital Expenditures: Microsoft anticipates capital expenditures of approximately $190 billion in 2026, a significant increase from $64.5 billion in 2025, with management noting ongoing capacity constraints, emphasizing the need to accelerate revenue conversion amidst uncertainty.
See More
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- Significant Revenue Growth: In April, Anthropic announced that its run rate revenue had surpassed $30 billion, a substantial increase from roughly $9 billion at the end of 2025, indicating strong momentum in the AI sector, with the CFO describing this deal as the company's 'most significant compute commitment to date.'
- Accelerating Cloud Business Growth: Google Cloud's revenue surged 63% year-over-year to $20 billion in Q1 2026, with operating income tripling to $6.6 billion, reflecting robust performance in the cloud market, while the revenue backlog nearly doubled to $460 billion, signaling strong market demand.
- Expansion into Hardware Sales: CEO Sundar Pichai announced that the company will begin shipping TPU hardware to 'select customers,' marking a significant expansion in its hardware sales channel, despite facing near-term compute constraints that could have resulted in higher cloud revenue.
See More
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- Data Center Partnership: Anthropic has partnered with SpaceX to utilize the newly built Colossus 2 data center, which boasts 220,000 GPUs and consumes 300 megawatts of power, significantly enhancing Anthropic's computing capacity to meet urgent AI training needs.
- Cash Inflow: This collaboration is expected to generate several billion dollars in cash flow for SpaceX, aiding its business development while providing Anthropic with much-needed computing resources to address competitive pressures in the market.
- Market Competition: In the AI sector, companies like OpenAI, Microsoft, Google, and Amazon are vying for computing power; this move not only alleviates Anthropic's resource constraints but also potentially strengthens its competitive position within the industry.
- Rapid Deployment: Elon Musk noted that SpaceX quickly completed the construction of Colossus 2, and although the demand for XAI has decreased, this move demonstrates SpaceX's flexibility and adaptability in the AI infrastructure market.
See More
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See More
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- Product Launch: Google has introduced the Fitbit Air, a screenless health tracker priced at $99.99, designed to leverage the full potential of Google Health Coach powered by Gemini AI models for personalized health insights.
- Technological Innovation: The Fitbit Air is Google's smallest tracker yet, utilizing high-fidelity sensor technology to monitor heart rate, rhythm, and blood oxygen levels 24/7, significantly enhancing users' health management capabilities.
- Battery Life and Compatibility: The device boasts up to a week of battery life, with fast charging providing a full day's power in just five minutes, and it is compatible with both Android and iOS, increasing its market competitiveness.
- Special Edition Collaboration: The Fitbit Air Special Edition, co-designed with NBA star Stephen Curry, retails for $129.99, showcasing Google's innovative approach and marketing strategy in the health tech sector.
See More
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- Diverse Industry Participation: The summit will feature insights from experts at top companies like Amazon, Google, and Microsoft, providing attendees with practical information on achieving secure and transparent workloads across cloud and distributed environments, facilitating comprehensive AI deployment in enterprises.
- Strong Market Demand: A recent IDC study found that 75% of organizations are adopting confidential computing, with 88% of respondents citing improved data integrity as their primary implementation driver, highlighting the urgent need for technical assurance and reflecting high market concern over securely processing sensitive data.
- Building Trust Infrastructure: The summit will explore the necessity of establishing verifiable trust infrastructure to support the next generation of AI agents and sensitive model data, emphasizing that trust has become the next bottleneck in AI adoption, necessitating guarantees for data and workflows protection during execution.
See More
