Alphabet (GOOGL) Cuts Shares as AI-CapEx Plan Doubles to $175B–$185B

Alphabet (GOOGL) shares fell over 5% on Thursday after the company outlined a plan to spend $175B–$185B on capital expenditures this year to build AI infrastructure, roughly double the $91.45B spent in 2025. The move shaved about $170B off its market value and brought its market cap below $4T. Cloud revenue surged 48% YoY to $17.7B in Q4, and the company topped estimates with revenue of $113.83B and $2.82 EPS. Despite analyst price-target lifts from JPMorgan, Citi, and Wedbush citing strong AI demand, the stock erased most of its year-to-date gains and closed up over 60% YTD.