Why Broadcom's Stock Is Getting a Boost After Alphabet's Earnings
Dow Jones07-24
Alphabet investors might not quite know what to make of Alphabet's new, higher spending forecast, but Broadcom investors seem to like it.
Shares of the semiconductor giant are up about 3% in Wednesday's extended session after Alphabet said it now plans to dole out $85 billion on capital expenditures this year, versus its prior forecast of $75 billion.
While Alphabet has a custom chip that it's designed, Broadcom helps produce it. Alphabet's management shared on the earnings call that in the latest quarter, most of its capex went toward technical infrastructure, with about two thirds of that going toward servers and the other third going toward data centers and networking equipment.
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