Google parent Alphabet beat Wall Street’s first-quarter profit and revenue expectations, thanks to strong ad sales driven by its aggressive AI investments. The company reassured investors that despite global economic uncertainties, AI initiatives are delivering solid returns. Alphabet also announced a massive US$70 billion stock buyback plan, sending its shares up 4% in after-hours trading and boosting its market value by US$75 billion.
Sticking to its ambitious AI expansion strategy, Alphabet maintained its US$75 billion capital expenditure forecast for the year. This positive outlook also lifted shares of other Big Tech companies like Meta and Amazon. However, analysts noted subtle signs that tech giants might be slowing new data center developments, possibly in response to rising costs from the ongoing US-China trade tensions.
US President Donald Trump’s trade policies have stirred fears of an economic downturn, making advertisers cautious and pressuring companies to rethink big spending projects. Nevertheless, major tech firms insist that continued investment in AI is critical for staying competitive, even as financial risks loom.
