Alphabet AI spending triggers 13% stock dip, investors view as buying chance

Alphabet's shares fell about 13% over the past month as investors weighed the company's aggressive AI investments, including an $80 billion equity raise and projected capital spending of up to $190 billion by 2027. Despite the pullback, the firm posted strong quarterly results, with total revenue of $109.9 billion, a 22% year‑over‑year increase, and Google Cloud revenue climbing 63% YoY. Sales of products built on its generative AI models surged nearly 800% year over year.

Institutional investors also adjusted their positions. Guyasuta Investment Advisors trimmed its Alphabet stake by 2.5% in Q1, holding 368,246 shares valued at $105.6 million, still the fund's largest holding at 6.1% of its portfolio. Other firms such as New Covenant Trust and Vermillion Wealth Management increased their stakes during the same period.