Alphabet’s AI Spending Concerns Weigh on Tech Sector
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Alphabet shares slid 2.5% Thursday morning despite beating earnings estimates, as investors balked at the company's aggressive AI spending plans. The tech giant reported $2.82 EPS on $113.83 billion revenue, yet concerns over projected $175-$185 billion 2026 capital expenditures overshadowed results.
The market's AI bubble anxieties extended across tech stocks, pressuring NVIDIA, AMD and now Alphabet. Gemini AI's 750 million monthly users demonstrate traction, but Wall Street remains skeptical of unchecked infrastructure investments. "We're seeing accelerated adoption across critical segments," CFO Anat Ashkenazi noted during earnings, defending the spending roadmap.
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