Google Down Double Digits From Highs as 2026 AI Capex Jumps 60%
Google shares are down double digits from 52-week highs as the broader Magnificent Seven sell-off continues. Google’s capital expenditures contribute to a projected $650 billion AI infrastructure spend in 2026, up 60% from 2025, which could weigh on its profit margins.
1. Google Stock Decline
Google shares have fallen over 10% from their 52-week high, joining the Magnificent Seven sell-off that has seen Microsoft drop more than 30% after signs of slowing sales growth.
2. 2026 AI Infrastructure Capex
Google’s capex plans form part of a combined $650 billion AI infrastructure investment by major tech players in 2026, marking a 60% increase over 2025 and raising concerns about margin compression.
3. Investor Rotation and Rate Impact
Rising oil prices driven by recent geopolitical tensions have reignited inflation, prompting the Fed to maintain higher rates for longer and steering institutional capital into energy, defense and domestic manufacturing sectors.