Breaking News on AI

Google’s parent company, Alphabet (ticker: GOOGL), released earnings last Wednesday, after the stock market closed.

Alphabet’s revenue rose 14% in the second quarter compared to 2024.

It blew past the expected 10.9% growth projected by Wall Street analysts.

Earnings were also very impressive.

Alphabet had an EPS of $2.31 per share, higher than the expected $2.18.

All of it sounds great!

Alphabet’s stock opened up more than 3% following the earnings release, though it ended the day only up 1%.

But I don’t really care a whole lot about Alphabet’s earnings.

Alphabet is one of the first tech stocks reporting its results every earnings season.

Microsoft (ticker: MSFT), Amazon (ticker: AMZN), and Meta (ticker: META) all release in a few days.

Alphabet being first is what interests me.

It provides an early peek into what’s going on in tech, which makes Alphabet’s earnings release very interesting to investors.

Alphabet’s latest release didn’t disappoint.

Alphabet announced it will spend $10 billion more on AI (artificial intelligence) infrastructure in 2025 than management previously forecasted.

Demand for AI is through the roof, and Alphabet is investing to keep up.

We’ll see further AI investments announced later in the week from Alphabet’s competitors.

Otherwise, they’ll start falling behind.

All of the tech investment into AI needs to go somewhere.

These stocks are going to take off when the tech money starts pouring in.

First up is Dell (ticker: DELL), which does a lot more than computers and laptops.

Dell is the top provider of servers in the world, and AI needs tons of servers to run.

And Dell’s server business is taking off.

In the first quarter of 2025, Dell booked more than $12 billion in orders for its AI-optimized servers.

$12 billion is more than Dell shipped out in all of 2024.

Next up is a utility, Constellation Energy (ticker: CEG).

What does a utility company have to do with AI?

A lot, actually.

Someone needs to power all of the AI servers provided by Dell, which is where Constellation Energy enters the picture.

Constellation Energy is one of the largest providers of nuclear-powered energy in the United States.

And tech companies are jumping on board.

Meta and Microsoft recently signed 20-year agreements with Constellation Energy to use its nuclear plants to power all of their AI operations.

Plus, Constellation Energy’s 24% ROE is one of the highest in the entire utility sector.

The final pick is Carrier (ticker: CARR), one of the largest HVAC companies in the United States.

The servers come from Dell, and the power comes from Constellation Energy.

But the servers put off a lot of heat, and data centers need to stay cold to function efficiently.

Carrier sells and services commercial air conditioning units for data centers to ensure they stay nice and cool.

Plus, Carrier is incredibly profitable.

Carrier’s 25% profit margin is one of the highest in the entire construction industry.

The AI boom is just around the corner, and so much of the focus is on tech.

But pay close attention to other companies like Dell, Constellation Energy, and Carrier, which will also benefit from the AI boom.

What other AI stocks are you excited about?