Google Shares Drop Over 10% as AI Capex Plans Surge 60%
Google shares are down more than 10% from their 52-week high following investors' concerns over a projected $650 billion AI infrastructure capex surge in 2026, up 60% year over year. Institutional rotation into energy, defense and domestic manufacturing has compounded selling pressure on growth-oriented names like Google.
1. Broad Tech Sell-Off Hits Google
Google shares have fallen more than 10% below their 52-week high, one of several double-digit declines across the Magnificent Seven group as investors reassess growth valuations.
2. AI Infrastructure Spending Concerns
Capital expenditures for Google and its peers are forecasted to total $650 billion in 2026, a 60% increase from 2025, raising concerns about margin compression from heavy AI infrastructure investments.
3. Institutional Capital Rotation Intensifies Pressure
Funds have moved into sectors such as energy, defense and domestic manufacturing, amplifying selling pressure on growth-oriented tech stocks like Google as investors seek safer yields.