Google parent Alphabet reassured jittery tech investors that its artificial intelligence (AI) investments were powering returns at its crucial ad business on Thursday, downplaying any impact from global economic uncertainty, for now.
The search giant’s first-quarter profit and revenue beat expectations, and the company said it would buy back US$70 billion in stock, pushing its shares up 4 per cent after market and adding US$75 billion to its market value.
Alphabet reaffirmed its ambitious AI buildout plans and backed its US$75 billion capex guidance for the year, offering hopes for investors in Meta Platforms and Amazon.com, whose shares also rose in aftermarket trading.
US President Donald Trump’s trade policy has triggered worries of an economic downturn, prompting companies to rethink their spending on advertising. It has also fuelled investor concern that tech giants may have to pause or slow their ambitious AI infrastructure build-outs due to rising costs from tit-for-tat tariffs between the US and China.
Big Tech firms have continued to defend their aggressive AI investments, saying these were necessary to remain competitive. But analysts have said there are early signs of tech majors pulling back on new data centre commitments.
