Alphabet experienced downward pressure as market sentiment turned cautious over elevated capital expenditures tied to its rapid artificial intelligence expansion. Investors are growing increasingly sensitive to the company’s substantial spending on AI infrastructure and datacenter capacity needed to power its Gemini models across consumer and enterprise products. While AI adoption continues to gain traction within Google Cloud and search operations, concerns persist that heavy capital intensity will compress near-term operating margins and weigh on free cash flow generation before meaningful monetization fully materializes.

Compounding these financial concerns is a…