NEW YORK — Alphabet Inc. Class C shares (NASDAQ: GOOG) slipped 0.41% to $385.17 in midday trading Tuesday, giving back a portion of recent gains as Wall Street weighed the company's aggressive capital expenditure plans against its accelerating artificial intelligence and cloud growth. The modest decline came amid broader market caution, even as analysts continue to view the Google parent as a core long-term AI winner.

Volume remained solid as investors processed Alphabet's strong first-quarter results from mid-April alongside updated full-year guidance that includes significantly higher spending on AI infrastructure. The stock has traded in a wide range this year, recently testing all-time highs near $400 before pulling back on profit-taking and concerns over elevated capital costs.

Alphabet reported blockbuster Q1 2026 earnings on April 29, with revenue climbing 22% to $109.9 billion, beating expectations. Google Cloud revenue surged 63% to a record $20 billion, driven by explosive demand for AI infrastructure and Gemini models. The company raised its 2026 capital expenditure outlook to $180-190 billion, reflecting massive investments in data centers, chips and AI capabilities.

Cloud and AI Leadership Fuel Optimism

Google Cloud continues to gain meaningful market share, with its backlog nearly doubling quarter-over-quarter to more than $460 billion. A major........

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