Alphabet and Amazon spending boosts AI hardware suppliers

Alphabet and Amazon are among the largest spenders on AI infrastructure as cloud customers demand more computing capacity. In 2026, Alphabet expects to spend between $195 billion and $205 billion, while Amazon expects to spend around $220 billion, with much of that outlay flowing to hardware suppliers including Nvidia, Broadcom, Micron, and Sandisk.

Nvidia remains a central beneficiary because its computing units are widely treated as the AI industry standard. Broadcom is also positioned to gain through its work with Alphabet on Tensor Processing Units, custom chips built for AI workloads that can offer stronger cost-performance when workloads are configured for them.

Memory suppliers are benefiting from a different pressure point: tight supply and sharply higher prices. Amazon raised its 2026 spending plans from $200 billion to $220 billion because of memory chip costs, while Sandisk attributed a third of its latest quarterly revenue growth to higher output and two-thirds to rising prices. Micron expects the shortage to last into 2028, suggesting elevated demand could continue supporting memory chip makers.