u/Heavy_Pudding7988

Google budgeted $190B capex for 2026, all capacity already sold out with binding minimum usage contracts. They are raising an additional $80B, almost certainly to be sold out as well. If compute demand continues to outstrip supply, Google’s AI‑infrastructure revenue stream becomes highly predictable and profitable, justifying the dilution and supporting a higher valuation. Go long GOOGL on the thesis that AI infrastructure monetization is both real and accelerating, with near‑term demand visibility. Macro slowdown in AI adoption, hyperscale competition driving down margins, or a sudden shift in Google’s capital allocation that reduces shareholder returns.