Google expects capital expenditures to reach up to $75 billion this year, far exceeding market expectations, and Broadcom and Celestica responded with gains

Although concerns about the "DeepSeek impact" leading to reduced spending caused a sharp decline in inventory for data center expansion infrastructure last Monday, large tech companies continue to accelerate their investments, with Google's expected capital expenditure far exceeding expectations.

In an overnight earnings call, Google announced a massive figure for its capital expenditure plans: $75 billion, which is 32% higher than market expectations. Google CEO Sundar Pichai stated in a press release that they are confident about future opportunities, and the spending targets are aimed at accelerating their progress.

Google released its earnings report after the market closed on Tuesday. Although its stock price plummeted, the company's projected data center spending far exceeded Wall Street's expectations. In fact, since early November last year, tech companies have sharply increased their spending expectations, with the five major tech companies, including Amazon and Google, expected to spend at least $320 billion on capital expenditures next year.

Google's spending forecast could benefit key suppliers, notably Broadcom and Celestica. After Google's earnings report, Broadcom and Celestica surged in after-hours trading, with Broadcom rising 3.5% and Celestica increasing 4.2%.

Major Tech Companies Announce Large-Scale AI Spending Plans for 2025

As of the end of the third quarter, Wall Street expects the data center spending ( total capital expenditure ) of major tech companies in 2025 to be as follows:

Since early November, the spending expectations of large tech companies have sharply increased.

Amazon is set to release its earnings report this Thursday (February 6), so it is still awaiting updates on its spending. Microsoft has reported earnings and stated that its data center spending growth rate will "slow down" in the next fiscal year, but it has already anticipated this slowdown.

Google expects its capital expenditure for this year to be $75 billion, which is 32% higher than expected. Meta predicts its capital expenditure for 2025 to be between $60 billion and $65 billion, which is 30% higher than Wall Street's expectations.

Oracle has joined OpenAI's Stargate project, which will lead to more investments in AI data centers.

Together, these five companies now expect to spend at least $320 billion on capital expenditures in the next fiscal year. This figure may rise as Oracle updates its capital expenditure data following its participation in Stargate and Amazon's report on Thursday.

Michael Chae, Vice Chairman and CFO of Blackstone, stated:

Over the past 15 years, the amount of data created and stored in the world has grown by about 100 times, so regardless of current events, this is a real big trend.

For DeepSeek, which has made investors uneasy, the continued decline in computing costs will lead to more usage and faster adoption, thereby driving overall demand for data centers. This view seems to have been "publicly reinforced," as companies like Meta and Microsoft continue to invest heavily in AI infrastructure