Memory chips remain in short supply and are among the biggest bottlenecks in the rapid buildout of AI data centers. Cloud and technology companies are racing to secure supply, often prioritizing memory spending and locking in long-term contracts to guarantee access to the scarce resource.\u00a0<\/p>\n
Stocks of other Alphabet suppliers rose as well. Nvidia and Broadcom rose nearly 1%, while Marvell Technology jumped nearly 3%.<\/p>\n
GOOGL\u2019s CapEx Update<\/p>\n
Alphabet on Wednesday said its June quarter CapEx doubled from a year ago to $44.92 billion, bringing the investment so far in 2026 to $78.6 billion. The Search and cloud giant then updated its full-year CapEx guidance range to $195 billion to $205 billion, up from the previous estimate of $180 billion to $190 billion.<\/p>\n
\u201cThe increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand. As we previously shared, we continue to expect our CapEx to increase significantly in 2027 and will provide more details at a later date,\u201d Alphabet CFO Anat Ashkenazi said on the earnings call.<\/p>\n
As such, Alphabet reported negative free cash flow of $5.9 billion for the quarter, marking the first time the company posted negative quarterly free cash flow since going public in 2004.<\/p>\n
GOOGL fell 2.3% overnight, with the heavy investment outlook overshadowing the company\u2019s better-than-expected second-quarter sales and profit and a record 82% growth in its cloud unit.<\/p>\n
Tesla CEO Elon Musk Praises Micron<\/p>\n
During Tesla\u2019s earnings call, which ran parallel to Alphabet\u2019s, CEO Elon Musk praised Micron for prioritizing memory chip allocation to the electric vehicle company. \u201cI actually I’d also like to thank Micron for giving us the memory allocation. They’re going to make some very tough decisions on memory allocation, and we really appreciate Micron making\u00a0room for Tesla in the years to come and giving us actually a very significant allocation on reasonable terms given the pretty insane pricing of memory these days,\u201d he said.<\/p>\n
Musk has a long-term \u201cterafab\u201d vision in which his own companies, Tesla and SpaceX, manufacture AI chips at an unprecedented scale. Until that takes off, they will still be dependent on third-party chipmakers such as Micron and Nvidia.<\/p>\n
MU, SNDK, SKHY: Retail\u2019s View On Memory Stocks<\/p>\n
On Stocktwits, the retail sentiment was \u2018neutral\u2019 for MU and SNDK, and \u2018bearish\u2019 for SKHY and DRAM.<\/p>\n
\u201cSo Micron is not only benefiting from an increase in DRAM pricing but at the same a further surge in Demand and CAPEX Spend! Only a complete fool would be bearish here! Just be patient and wait for the ripcity action soon,\u201d a trader\u00a0posted<\/a>.<\/p>\n \u201d$MU It looks like MU will break $1000 when the market opens tomorrow morning,\u201d a trader\u00a0said<\/a>. The stock has been trading below that level since July 6.<\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n \u00a0<\/p>\n
![\"Follow](\"https:\/\/chunks-prd.stocktwits-cdn.com\/_next\/static\/media\/google-news-icon.d9c2bfd1.svg\"\/){kind=icon}
<\/a><\/p>\n