Tech leaders ramp up AI spending, but Alphabet’s cash flow wins investor favour

Three of the biggest US technology companies flagged plans on Wednesday to accelerate capital spending over the next year but investors were most accepting of Google-parent Alphabet’s ability to fund its plans from its cash flow.

Alphabet, Microsoft and Facebook-owner Meta all announced plans for higher annual capital expenditures as they pour money into chips and data centres.

Shares of all three have risen substantially this year on expectations that they will be winners in the AI race, but investors only cheered Alphabet’s report as they calculated…