Wedbush: Google Limiting Meta Gemini Access Signals Strong AI Compute Demand

On June 30 Wedbush framed Google’s decision to restrict Meta’s Gemini View access as fresh proof that AI compute supply remains severely constrained. The note builds on March reports that Google could not fulfill Meta’s full capacity request, a bottleneck now driving Alphabet’s aggressive spending. Q1 Google Cloud revenue surged 63% to $20.03 billion while the backlog nearly doubled to $462 billion, prompting 2026 capex guidance to be lifted to $180-190 billion. Shares of Alphabet rose 1.2% alongside broader megacap gains as investors treat the shortage as evidence of sustained pricing power rather than softening demand.