Alphabet Stock Slides 1.5% to 18th in Trading Volume as $85B AI-Driven Capex Targets $106B Cloud Backlog

Alphabet (GOOG) fell 1.51% on August 1, 2025, with a trading volume of $4.03 billion, a 25.23% decline from the prior day, ranking 18th in market activity. The stock’s performance coincided with CEO Sundar Pichai’s announcement of a $85 billion 2025 capital expenditure plan, up from $75 billion, to address a $106 billion order backlog in Google Cloud driven by AI demand. The cloud segment reported 32% year-over-year revenue growth in Q2 2025, fueled by 35x higher usage of Gemini models and 85,000 enterprises adopting the platform for AI development.

Alphabet’s strategic focus on AI infrastructure is reshaping its financial outlook. Google Cloud’s backlog reflects heightened demand for data center capacity as enterprises scale advanced AI applications, necessitating expanded hardware investments. The increased capex underscores the company’s commitment to maintaining competitive edge in AI-driven cloud services, though short-term volatility remains tied to execution risks in capital-intensive projects. Analysts highlight that Alphabet’s ability to convert backlog into revenue will depend on infrastructure deployment timelines and global demand sustainability.

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