Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMarc Guberti, The Motley FoolSat, July 25, 2026 at 10:03 AM GMT+2 5 min readAlphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) delivered a solid second-quarter earnings report on Wednesday. Cloud revenue was up by 82% year over year, and the Gemini app reached 950 million monthly active users.Some investors were spooked when Google's parent company raised its capital expenditures guidance, implying that it will spend up to $205 billion this year, which is likely why the stock slipped by more than 6% in Thursday trading. However, that isn't a problem for these three AI companies, which are poised to benefit from higher data center capital expenditures.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.Cipher DigitalCipher Digital (NASDAQ: CIFR) builds AI data centers and leases them to hyperscalers like Alphabet. It's a play on the need for electricity to power those massive server clusters, and Cipher Digital can keep its costs lower than neoclouds since it does not provide the chips or software. Tenants must bring those resources themselves.It's a convenient model for customers that use custom chips. Alphabet has been prioritizing its custom-made Tensor Processing Units (TPUs) for its products and is even offering them to smaller cloud companies, directly competing with Nvidia. Cipher Digital's co-location model offers more flexibility and lower overhead costs than Iren or Nebius, which have both committed to vast Nvidia chip fleets.Cipher Digital is on target for a 4.2 gigawatt portfolio capacity by 2030, and it's continuing to sign new hyperscaler tenants. While net operating income remains low since it takes time to turn contracts into recognized revenue, Cipher Digital projects substantial growth in its net operating income next year. It's supposed to rise from $86 million to $646 million based on secured contracts that just need AI capacity.Revenue will also be quite predictable due to the 15-year leases that Cipher Digital has its tenants sign. Alphabet's commitment to higher capital expenditures suggests Cipher Digital's AI data centers are about to get more demand.BroadcomChipmaker Broadcom (NASDAQ: AVGO) is the leading designer of application-specific integrated circuits (ASICs). It collaborates with many tech giants, including Alphabet, on these custom chips. The TPUs Alphabet wants to sell or lease to cloud companies are designed by Broadcom.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info