AI Investments Shake Up Big Tech Market Amid Alphabet's Bold Moves

U.S. stock index futures remained stable as Alphabet's ambitious spending plans contrasted with its strong quarterly results. Qualcomm's shares fell after disappointing forecasts. The AI market is seeing significant rotation in investments, with Big Tech expected to heavily invest in AI. Concerns focus on the viability of these investments.

The U.S. stock index futures showcased stability on Thursday despite Alphabet's aggressive capital-expenditure plans overshadowing its notable quarterly results. Investors showed apprehension about Qualcomm's decline following its bleak forecast.

Seen as a significant player in the AI landscape, Alphabet's spending plans boosted shares of semiconductor and chip equipment companies. Broadcom, Lam Research, and Applied Materials all saw stock increases, indicating optimism in the sector.

As the AI arms race intensifies, investors are keenly observing how swiftly Big Tech can transform these investments into profit. The market's focus continues on AI's potential impact, as many scrutinize Big Tech's rapid shift to AI as a core growth driver.

(With inputs from agencies.)