Alphabet Plans $175–185B AI CapEx as Gene Munster Sees Breakthrough Within 12 Months
Deepwater's Gene Munster says artificial intelligence is in its second inning and predicts meaningful utility within six to 12 months, pushing markets to reevaluate Big Tech timelines. Alphabet has earmarked $175–185 billion in 2026 capital expenditures for AI infrastructure, contributing to a 7.06% share decline.
1. Munster's AI Timeline
Deepwater Asset Management's Gene Munster now believes AI is in its second inning, forecasting meaningful real-world utility within six to 12 months as investors reassess long-term adoption timelines.
2. Alphabet's 2026 CapEx Plan
Alphabet has budgeted $175–185 billion in capital expenditures for 2026, driven primarily by AI inference infrastructure to support large-scale deployment of real-time applications.
3. Share Performance Impact
Alphabet Class A shares have declined 7.06% over the past five trading days, reflecting concerns over heavy capex commitments and uncertain near-term returns on AI investments.
4. Future Spending and ROI
Guidance suggests elevated capex could persist for five to 10 years as inference workloads scale, with potential for substantial long-term returns once AI utility breakthroughs materialize.