Alphabet loses more than $500 billion amid AI mode concerns
Alphabet, Google's parent company, had a rough Thursday, with its stock dropping more than 12%, the biggest single-day fall in its history.
That's more than $500 billion gone, shrinking the company's value from $3.97 trillion to $3.46 trillion.
Even though Alphabet reported a solid 25% jump in revenue last quarter, investors got spooked because Google's AI Mode was generating lower advertising monetisation than traditional search queries, and the strong growth in AI Mode queries had an impact because of the lower monetisation being seen.
Chipmakers slide amid $1T AI doubts
Alphabet isn't alone. Other tech giants are feeling the heat too.
Intel shares tumbled after a gloomy forecast, dragging down chipmakers like NVIDIA and AMD.
In China, major tech stocks also took a hit.
With global spending on AI infrastructure expected to top $1 trillion next year, there's growing anxiety about whether all this investment will actually pay off or whether future demand for AI will justify it.