AI investment logic repaired again! Under heavy pressure from tariffs, Alphabet Inc. Class C's parent company Alphabet (GOOGL.US) reaffirms its $75 billion investment plan.

Following the "Trump Tariff Storm" sweeping the globe, in which many top Wall Street banks emphasized the continuous explosive growth of hardware demand for AI infrastructure with AI chips at its core, US tech giants have also begun to join the ranks of Wall Street - extremely bullish on the expansion of AI computing resources demand. For example, Sundar Pichai, CEO of Alphabet Inc. Class C parent company Alphabet (GOOG.US) (GOOGL.US), reiterated the tech giant's recent commitment to invest approximately $75 billion in building a large-scale AI infrastructure for AI data centers. Pichai's statement comes at a time when investors are increasingly worried about the Trump administration's aggressive global tariff policy, which is causing extreme negative effects on global IT budgets, and as the "AI investment logic" in the global stock market enters a phase of repair. "In 2025, we plan to invest approximately $75 billion in total capital expenditures. These investments will focus on AI servers and AI data centers, including infrastructure supporting our AI training/inference computing power system and cloud computing business." Alphabet Inc. Class C CEO Pichai said at the 2025 Alphabet Inc. Class C Cloud Next conference on Wednesday. "We believe this will greatly benefit our customers." Pichai also announced that the company will open up Alphabet Inc. Class C's global "Private Network Services" to global enterprises. The service, named "Cloud Wide Area Network (WAN)," is built on Alphabet Inc. Class C's global network architecture and is designed to optimize performance for various applications, providing over 40% performance improvement while reducing operating costs by up to 40%. Pichai emphasized that this new service will be open to all Alphabet Inc. Class C cloud platform customers later this month. Major US tech giants, including Alphabet's Alphabet Inc. Class C, Amazon.com Inc. AWS, Meta Platforms parent company Face, and Microsoft Corporation, have invested hundreds of billions in recent quarters and plan to maintain the same scale of investment in 2025, or even stronger. Alphabet CFO Anant Ashkenazi pointed out in February that in the fourth quarter of 2024, the company's capital expenditures reached $14 billion, mainly in the area of AI technology infrastructure, with the highest proportion of investments in high-performance AI servers powered by NVIDIA Corporation's AI GPU, followed by data center core hardware, to drive growth in Alphabet Inc. Class C's software services, cloud computing business, and DeepMind business. On Wednesday, US President Donald Trump announced the temporary suspension of the process of imposing high tariffs on dozens of countries, while increasing pressure on China. In response to the potential pressures of the tariff policy, Sashin Gupta, Vice President and General Manager of Alphabet Inc. Class C's cloud computing infrastructure business department, told the media that hardware-related import costs may increase, but customer demand requires Alphabet Inc. Class C to continue increasing investment. "We are evaluating the impact of the tariff policy," Gupta said in a media interview. As of press time, a spokesperson for Alphabet Inc. Class C did not immediately respond to media requests for comment. Wall Street banks are focusing on repairing AI investment logic Morgan Stanley's latest CIO report specifically points out that AI/ML (Artificial Intelligence/Machine Learning) spending is at the forefront in the IT budgets of US tech-type companies, with continued strong demand for security software closely following the AI wave, and communication equipment related to AI data centers is expected to see significant spending growth in 2025. Morgan Stanley states that despite the impact of macroeconomic fluctuations, while CIOs have lowered their expectations for short-term IT budget growth, their confidence in core long-term growth drivers (such as artificial intelligence/machine learning) and mid-term IT spending remains stable, with AI spending expected to continue to expand significantly. The report also shows that Dell Technologies, Inc. Class C (DELL) has performed well among enterprise hardware suppliers, with a net spending intention of +35%, up 1 percentage point from 3Q24, reaching a new high in Morgan Stanley's survey report in over 8 years. This reflects that major US tech companies have a very strong demand for core hardware in the AI infrastructure field. Morgan Stanley's survey data shows that 55% of CIOs assessing or planning to assess AI technologies show a preference for DELL's AI infrastructure solutions, slightly up from 54% in 3Q24. This survey result also indicates that the demand for high-performance AI servers powered by AI GPUs and AI ASICs remains very strong. A research report released by KeyBanc Capital Markets on Tuesday shows a "two-sided" pattern in the global semiconductor industry - strong demand for AI chips but other types of chip demand still struggling. KeyBanc analysts...It is stated that the strongest demand in the AI chip market is still fully dominated by the "AI Chip Overlord" NVIDIA Corporation (NVDA.US), which occupies 80%-90% of the market share. Other AI chip participants have generally not been able to shake off the negative catalysts. Analysts specifically point out the smooth progress in the mass production of the Blackwell architecture AI GPU, while the demand for advanced CoWoS packaging remains stable.KeyBanc analysts reiterated the firm's target stock price of $190 for NVIDIA Corporation in the next 12 months, as well as their "overweight" rating on NVIDIA Corporation's stock. As of the close of trading on Wednesday, NVIDIA Corporation's stock price surged over 18% to close at $114.33.