Signage outside the Google headquarters in Mountain View, California, US, on Tuesday, Feb. 3, 2026.
Alphabet's fourth-quarter earnings and revenue beat Wall Street expectations. Its cloud unit dazzled, notching a nearly 48% increase in revenue from a year earlier.
The tech giant expects capital expenditure for 2026 to come in between $175 billion and $185 billion — at the higher end, capex will more than double from last year. The huge increase appears to have spooked investors: Alphabet shares fell as much as 3% in extended trading.
Artificial intelligence stocks have been having a difficult time this week. Advanced Micro Devices shares tanked 17.3% during regular trading on its disappointing first-quarter forecast. Other AI-related names, such as Broadcom and Oracle , also fell.
The tech-heavy Nasdaq Composite lost 1.51% and the S&P 500 retreated 0.51%, clocking its fifth negative session in six. However, the Dow Jones Industrial Average rose 0.53%, lifted by Amgen and Honeywell .
While sentiment around AI plays has been hit, CNBC Investing Club creator Jim Cramer is still optimistic on South Korean chipmakers. Samsung Electronics and SK Hynix are "visionary" companies, Cramer said on CNBC's "Squawk Box Asia," adding that he would have wanted to work for them if he lived in the country.
Oil prices slipped around 1% following reports that U.S. and Iran will be having talks in Oman on Friday.
In other oil news, Venezuela assured China that its oil pricing will not be set by the U.S., and Russia insisted that India hasn't said it would be stopping oil purchases from Moscow, despite Trump suggesting so.
— CNBC's Jennifer Elias contributed to this report.