Alphabet's 2026 capex surge worries investors

Alphabet's results for the fourth quarter exceeded Wall Street predictions, both in earnings and sales. 

Its cloud division impressed with nearly a 48% surge in revenue compared to the previous year.

The tech giant anticipates its 2026 capital spending to range between $175 billion and $185 billion — potentially more than doubling from last year on the higher end. 

This significant jump seemed to unsettle investors: Alphabet’s stock dropped as much as 3% before slightly recovering to a 0.39% loss in after-hours trading.

However, one company is gaining from the update. Shares of Broadcom surged over 6% in after-hours trading — the company produces bespoke chips for Alphabet.

This boost helped Broadcom recover some losses from the regular session, when it, along with other tech names like Advanced Micro Devices — which plunged 17.3% on its underwhelming first-quarter projection — and Oracle, slipped 3.8%.

The tech-centric Nasdaq Composite dipped 1.51%, and the S&P 500 decreased by 0.51%, marking its fifth loss out of the last six sessions. 

Nonetheless, the Dow Jones Industrial Average rose 0.53%, buoyed by Amgen and Honeywell.

Despite recent challenges to AI-driven investments, CNBC Investing Club founder Jim Cramer remains hopeful about South Korea's chipmakers. 

He described Samsung Electronics and SK Hynix as "visionary" firms during CNBC's "Squawk Box Asia," adding that he would have considered working there if residing in South Korea.

The attitude toward silver, on the other hand, stays uncertain. The metal's prices plummeted up to 16% on Thursday, ending a brief two-day recovery.

In Europe, French financial institution BNP Paribas delivered fourth-quarter earnings surpassing projections and raised its net income goals from 2025 to 2028, while Shell didn't achieve its fourth-quarter earnings targets.