Alphabet’s TurboQuant Launch Triggers Memory Stock Selloff as Shares Dip
Alphabet revealed TurboQuant, a new AI compression algorithm that slashed memory requirements and sparked an 18% weekly drop in Micron and a 20% decline in Sandisk. Record Q4 2025 revenue reached $113.83 billion with 34% EPS growth and Google Cloud revenue jumped 48% YoY to $17.66 billion even as shares slid 16% from February highs.
1. TurboQuant AI Compression Algorithm
Alphabet launched TurboQuant to reduce AI system memory demands, aiming to streamline data processing for generative and predictive models. Its debut triggered an 18% weekly selloff in Micron and a 20% drop in Sandisk as investors weighed the competitive threat to memory suppliers.
2. Record Q4 2025 Financial Results
In Q4 2025, Alphabet posted record revenues of $113.83 billion, marking its highest quarterly sales to date, while EPS grew 34%, reflecting strong ad sales and cost controls. These figures underscore continued top-line momentum despite broader market volatility.
3. Google Cloud 48% Year-Over-Year Growth
Google Cloud revenue surged 48% year-over-year to $17.66 billion, driven by enterprise AI adoption and expanded cloud services. This segment’s rapid expansion is central to Alphabet’s strategy to diversify beyond advertising.
4. 16% Share Pullback and Analyst Outlook
Alphabet shares fell 16% from February peaks, breaking key support levels near $300, as profit-taking and sector rotation weighed on tech stocks. Analysts largely view the decline as a healthy correction within an ongoing uptrend, with a $367.18 consensus price target implying 26% upside.