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Alphabet shares fall after AI capex guidance is raised and Intel rallies
Alphabet shares dropped 7.1% in a day, while Intel said foundry sales rose 30.5% year over year as the government holds a 9.9% nonvoting stake.
Earnings week roared forward for major tech, and Yahoo Finance AlphaSpace highlighted sharp moves across Alphabet, Intel and Tesla. Alphabet’s second quarter capped spending, with capital expenditures at $44.9 billion, slightly above Wall Street’s $44.7 billion forecast, and the company raised full year capex guidance to $195 billion to $205 billion from $180 billion to $190 billion.
The market reaction was swift for Alphabet. On Thursday, the stock fell 7.1%, erasing about $293 billion in market value on the day, and shares slipped below the 200 day moving average, even as the company reported its strongest revenue growth rate in 15 years and beat forecasts across all business segments.
AlphaSpace also pointed to improvements at Intel’s foundry business. Foundry segment sales rose 30.5% year over year, and the outlet tied the momentum to a federal investment framework that converted CHIPS Act and Secure Enclave funding into an $8.9 billion Intel common stock purchase, creating a 9.9% nonvoting federal stake after the Aug. 22, 2025, agreement.
For Tesla, the focus was on planned spending levels tied to its AI and robotics roadmap. The company said it will commit $25 billion in capital expenditures for 2026, roughly three times its historical spending, and it expects a significant increase in 2027 as it ramps Optimus and related robotics efforts.