Alphabet’s aggressive AI capex plan sparks a technical caution for the stock

Alphabet’s market momentum dimmed after the company lifted full-year capital spending guidance to as much as $205 billion, unsettling investors already wary of hyperscalers’ escalating AI outlays. Shares slipped below their 100-day moving average and fell nearly 5% premarket, putting a test of the 200-day average near $323 in play. Second-quarter capex reached $44.9 billion, slightly topping estimates, as Alphabet pushes into AI infrastructure including its TPU/Axion stack. The heavy spending overshadowed a robust quarter for Google Cloud, where revenue jumped 82% to $24.8 billion and backlog swelled to $514 billion, signaling strong demand for AI workloads. CEO Sundar Pichai touted traction across AI-enabled Search, YouTube and Gemini, while some analysts argued Alphabet remains best positioned to monetize AI at scale. Still, with Wall Street scrutinizing the sustainability of big-tech infrastructure budgets, investors are recalibrating expectations for the stock’s near-term technicals.

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