Alphabet Inc. (GOOGL) is back in the bond market with a new euro debt sale, as the Google parent looks to fund its large AI push. The company is selling debt in six parts, with cash from the deal to be used for “general corporate purposes,” which may also include the repayment of debt.
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Forget margin or options. Here's how the pros trade AMZNThe move comes as Alphabet plans as much as $190 billion in capital spending this year. That is more than it spent in the past three years combined. Most of that cash is expected to go toward data centers, which are key to Google’s AI plans.
In short, Alphabet’s AI race is not just about new tools or cloud growth. It is also becoming a story in the debt market. The company has the cash flow and credit strength to borrow, but the size of the spend is now hard for the market to ignore.
Meanwhile, GOOGL shares dropped slightly on Monday, closing at $383.25.
Big Tech Keeps Borrowing for AI
Alphabet is not alone. The largest cloud firms are set to spend as much as $725 billion this year on AI data center gear and other capital needs. As a result, bond sales tied to AI are rising fast.
Meta Platforms (META) priced a $25 billion bond sale on April 30, while Amazon (AMZN) raised almost $54 billion in March. Oracle Corp. (ORCL) also raised $25 billion in February, with demand that hit $129 billion at its peak.
Still, there are signs that some bond buyers may be getting tired. Around $300 billion of AI-linked debt has already been sold through notes and project finance debt. That does not mean demand is gone. However, it does mean investors are starting to look more closely at how much AI spending will turn into real profit.
For Alphabet, the main risk is not whether it can fund the buildout. The bigger issue is return. Investors may stay calm as long as Google Cloud, Search, Gemini, and AI tools show clear growth. But if that link gets weaker, the huge AI spend could become a drag on the stock story.
Is Google Stock a Buy, Sell, or Hold?
Turning to the Street, Alphabet boasts a Strong Buy consensus view. Of 32 ratings issued, 27 analysts rate it a Buy, while five analysts rate it a Hold. The average GOOGL stock price target is $423.31, implying a 10.45% upside from the current price.
