$420 billion is the projected combined AI infrastructure outlay from Alphabet (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN) in 2026, with Alphabet guiding to between $195 billion and $205 billion and Amazon targeting approximately $220 billion. At Alphabet's midpoint of $200 billion, the components sum to the headline. Four hardware names sit directly in the spend stream: Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Micron Technology (NASDAQ: MU), and Sandisk (NASDAQ: SNDK).
| Company | 2026 capex guidance | Label |
|---|---|---|
| Alphabet | $195B to $205B | Projected |
| Amazon | ~$220B | Projected |
| Combined midpoint | ~$420B | Projected |
Compute layer: Nvidia volume versus Broadcom's TPU
Nvidia is the baseline beneficiary. Cloud clients specify Nvidia compute because workloads built on it can migrate between providers without architecture rewrites, a flexibility that sustains demand. Nvidia has told investors it expects AI hyperscaler spending to top $1 trillion in 2027. If that figure tracks, 2026 reads as mid-cycle.
Broadcom enters through the Tensor Processing Unit, co-developed with Alphabet. TPUs carry better cost-performance than Nvidia chips on properly configured workloads. The configuration process can bind clients to Alphabet's cloud ecosystem rather than leaving them portable. Broadcom expects its custom AI semiconductor division to exceed $100 billion in sales, against $10.8 billion recorded in the second quarter.
Memory: price-driven gains on a fixed cost base
Amazon revised its 2026 capex up from $200 billion to $220 billion because memory chip prices have risen sharply, with the same supply pressure likely shaping Alphabet's guidance. Capacity has not kept pace with hyperscaler demand.
Sandisk's latest quarterly results broke down the revenue split: two-thirds of growth traced to higher selling prices, one-third to increased output. Input costs for Sandisk and Micron have held steady. Only the end selling price has moved, which is what makes the memory trade a margin story rather than a volume story. Micron's management has said the shortage will last into 2028, extending the window of above-trend pricing for both companies. That 2028 timeline is the firmest forward commitment either company has made.