Alphabet's market value plunge on AI fears

Alphabet has shed roughly $500bn in market value after its latest earnings showed AI-powered search features cutting into traditional advertising revenue. The disappointing results reignited investor worries that massive AI infrastructure spending across the tech industry is outpacing actual returns, pulling down major Wall Street indexes. Analysts are citing Alphabet's drop as a key test of whether AI capital expenditure is running ahead of near-term revenue growth across the sector.