Nvidia, Broadcom Shares Soar After Alphabet's AI Capex Boost

Google introduced Gemini 3 — a top-tier AI model that outperforms major rivals on many benchmarks. Crucially, Gemini 3 was trained entirely on Google’s in-house TPUs, not Nvidia GPUs. Google is now offering TPUs to external customers as a lower-cost, integrated alternative to GPUs. Its full-stack offering (custom chips, software and cloud services) can reduce hardware and operational costs for large AI workloads.

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CNBC TV18•05-02-2026, 07:49

Nvidia, Broadcom Shares Soar After Alphabet's AI Capex Boost

•Broadcom and Nvidia shares surged in extended trading following Alphabet's announcement of increased AI capital expenditure.
•Alphabet plans to nearly double its capital expenditure to up to $185 billion this year, primarily for expanding data center capacity for AI workloads.
•Melius Research's Ben Reitzes highlighted the significant benefit for Broadcom and other companies associated with Alphabet due to this spend.
•Broadcom collaborates with Google on the design and manufacturing of its in-house TPUs and is expanding its custom chip business (ASICs) for AI.
•Despite Google's proprietary TPUs, Alphabet continues to utilize Nvidia chips, contributing to Nvidia's stock rise.

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