The AI ​​race

The giants' AI investments scare investors

Alphabet and Tesla are falling on Wall Street after announcing sharply increased AI investments in their interim reports, notes CNBC.

The Google owner raised its forecast for capital expenditures for the full year 2026 to $195-205 billion, from a previous $180-190 billion. Tesla expects investments to exceed $25 billion this year.

- Investors seem to be focusing on the sharp increase in capital expenditures, along with a weaker outlook for profitability, Quilter Cheviot's head of analysis Ben Barringer told CNBC.

At the same time, the market is worried that the other technology giants will also increase the pace of investment, writes Reuters.

- The risk is tilted to further increases, especially as long as Microsoft and others still have capacity shortages, says Saxo strategist Charu Chanana to the news agency.

Tesla plunges 13 percent and Alphabet around 7 percent on Thursday's stock market.

Asian chip stocks rose after Alphabet's report

Asian semiconductor stocks rose after Alphabet's plans to spend up to $205 billion, equivalent to 2,000 billion kronor, on AI investments sparked optimism about positive side effects. Bloomberg reports.

The interim report from Google's parent company, released on Wednesday evening, helped calm the market, which has been concerned about how sustainable the AI ​​rally on the stock market is.

"The bar was high, but Alphabet got over it," wrote Mark Mahaney, an analyst at Evercore ISI, in a comment to the news agency.

South Korean memory card manufacturer SK Hynix rose 3 percent. The company receives more than 7 percent of its sales from Alphabet. Samsung rose nearly 4 percent.