Google upped its capex forecast for 2026 yet again. These stocks are benefiting.

Google (GOOG) (GOOGL) increased its 2026 capital spending forecast yet again this week, as the tech giant now expects to spend between $195B and $205B, up from a prior estimate of $180B and $190B.

Most of the spending is related to artificial intelligence, and while investors in the tech giant are concerned (especially since free cash flow was negative in the quarter), the cash outlay is benefiting other companies.

Shares of Google suppliers such as Lumentum (LITE) and Celestica (CLS) were higher in premarket trading, while Broadcom (AVGO) fell fractionally. Broadcom may be losing some of its work on Google's tensor processing units (sales of which boosted Google Cloud revenue during the quarter) to MediaTek, though Morgan Stanley recently called it a “core AI winner.”

Third-party capacity

While Google upped its 2026 spending forecast, the company also made the disclosure that it is going to start relying on third parties to help with the “supply constrained environment,” as demand for AI continues to skyrocket.

“And given the supply constrained environment, we plan to expand the use of third-party capacity in Q3 as a bridging strategy while we build up more internal capacity,” Google CFO Anat Ashkenazi said on the earnings call. “This strategy allows us to keep growing our customer base and capture greater overall value. However, it will create modest margin pressure in the near term as we utilize this capacity.”

Ashkenazi's comments aided shares of neocloud computing companies such as Nebius Group N.V. (NBIS), CoreWeave (CRWV), and IREN (IREN), which were up between 1% and 2.5%, respectively.