Alphabet Doubles Q2 Capital Spending to $44.9B, Raises 2026-2027 Guidance to $195-205B

According to Alphabet's second-quarter earnings release announced this week, the company doubled its capital expenditure to $44.9 billion in Q2 2026 and raised its full-year guidance to $195-205 billion, with expectations of significant further growth in 2027. The increased spending reflects elevated demand for AI computing infrastructure.

The capital spending surge is driving tight supply conditions across the PCB (printed circuit board) supply chain. Key upstream materials including electronic cloth, copper foil, and resin face structural shortages due to cautious overseas capacity expansion and production shifts. Electronic cloth has undergone five price increases since the start of 2026, with cumulative gains reaching 100 percent. Copper foil supply gaps are expected to reach 1,500 tons in 2026, pushing major substrate manufacturers to raise prices for the sixth time this year.