Alphabet Shares Dive on Higher AI Spending Forecast as Analysts React

Alphabet’s stock fell nearly 5% after the company raised its capital‑expenditure guidance to $195 billion–$205 billion for the year, citing accelerated investment in artificial‑intelligence products such as Gemini and Google AI Studio. Analysts had mixed reactions: while many trimmed price targets, they also noted strong results. Cloud revenue surged more than 80% year‑over‑year and the top line beat expectations, supporting continued optimism about AI growth. Roth’s Rohit Kulkarni kept a $440 price target, saying higher spending is needed to capture AI’s expanding market, and recommended buying on weakness. Other firms offered a range of ratings and targets—Citizens $515 (51% upside), JPMorgan $420, Evercore ISI $420, Cantor $420, Citi $447 (31% upside) and Piper Sandler $395—reflecting both confidence in Alphabet’s AI push and concern over the near‑term hit to earnings.

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