Technology companies faced severe market corrections during a frenzied earnings season as ballooning capital expenditures alarmed investors, according to Yahoo Finance AlphaSpace data. Alphabet shares suffered a steep 7.13% decline after executives raised full-year capex guidance to $205 billion, while Intel posted its strongest revenue growth in 15 years following a federal equity investment.
Alphabet Capital Expenditure Surge Triggers Stock Selloff
Alphabet shares dropped 7.13% on Thursday, erasing approximately $293 billion in market value in a single session, according to Yahoo Finance AlphaSpace data. The selloff pushed the stock below its key 200-day moving average. The market reaction came despite positive artificial intelligence metrics in the company’s second-quarter earnings report. According to corporate disclosures, Alphabet’s second-quarter capital expenditures reached $44.9 billion, narrowly exceeding Wall Street forecasts of $44.7 billion. Furthermore, executives raised full-year capital expenditure guidance to a range of $195 billion to $205 billion, up from the previous projection of $180 billion to $190 billion. Company leadership also signaled a significant increase in capital spending for 2027 during the earnings call.
Intel Posts Record Revenue Growth Backed by Federal CHIPS Act Stake
Intel shares have skyrocketed 320% following a strategic federal equity investment under the CHIPS Act. The company recorded its strongest revenue growth rate in 15 years during the second quarter, with revenue across all business segments beating Wall Street forecasts. Intel’s turnaround is anchored by improvements in its foundry segment, where sales rose 30.5% year over year. This momentum follows an August 22, 2025, agreement in which the Trump administration converted previously awarded, un-disbursed CHIPS Act and Secure Enclave funding into an $8.9 billion investment in Intel common stock. That transaction granted the federal government a 9.9% nonvoting ownership stake. Combined with earlier CHIPS Act payments, total federal financial commitments to Intel reached $11.1 billion.
Tesla Commits to Aggressive AI Spending for Optimus and Robotaxis
Tesla is mirroring the aggressive spending trends seen across the broader technology sector as it scales investments in autonomous systems. According to company disclosures, Tesla plans to commit $25 billion in capital expenditures for 2026, representing roughly three times its historical spending levels. Leadership indicated that capital expenditures will see another significant increase in 2027 as CEO Elon Musk ramps up production for Optimus and robotaxi initiatives.
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Frequently Asked Questions
Why did Alphabet stock drop following its earnings report?
Executives raised full-year capex guidance to between $195 billion and $205 billion and signaled significant spending increases for 2027.
How much did the federal government invest in Intel?
The federal government committed a total of $11.1 billion to Intel through CHIPS Act and Secure Enclave funding, which included an $8.9 billion conversion into an equity stake representing 9.9% of Intel common stock.
What are Tesla’s capital expenditure plans for upcoming years?
Tesla committed to $25 billion in capital expenditures for 2026—about three times its historical spending levels—with further significant increases anticipated in 2027 to support Optimus and robotaxi production.
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