Alphabet (GOOG) Surges 24% as Revenue Growth Soars, But Is $190 Billion in Capex Too Much?
Alluvium Asset Management, an asset management company, released its "Conventum, Alluvium Global Fund" second-quarter 2026 investor letter. The letter can be downloaded here . The second quarter reflected a sharp shift from geopolitical uncertainty and oil market volatility to a powerful equity rally led by semiconductor companies. Despite the broader market strength, the Fund declined 1.4% in EUR terms, 2.2% in USD terms, and 3.9% in AUD terms. Portfolio results were mixed, with Alphabet benefiting from strong Cloud growth, while Robert Half, H&R Block and other holdings posted solid gains. However, cable businesses and several healthcare and consumer holdings weighed on performance. Also, check the fund's top five holdings to see its best picks in 2026.
Conventum, Alluvium Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2026 investor letter:
" Alphabet Inc. (NASDAQ:GOOG) was the Fund's strongest performer over the quarter, up 24.4%. There's little to add from our last report, except that its 22% revenue growth exceeded our expectations, and it seems it can't keep up with demand, hence it has increased, yet again (and somewhat worryingly) its capital expenditure to budget (to USD 190b) and expects further increases next year."
Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of 40 Most Popular Stocks Among Hedge Funds . As per our database, 195 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the second quarter, which was 201 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
In another article , we highlighted the partnership between Alphabet Inc. (NASDAQ:GOOG) and Accenture aimed at accelerating enterprise AI adoption. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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