New Delhi, Feb. 5 -- Shares of Google's parent Alphabet dropped after the company said it would double capital expenditures this year, indicating another significant push to strengthen its position in the AI race.

Big Tech companies are projected to invest over $500 billion in AI this year, raising worries among investors over high valuations and expected returns, Reuters reported.

Alphabet shares tumbled 7% to $309.32 at 9:34 am in New York, the biggest intraday drop since May, while the stock has gained about 64% over the last year, Bloomberg reported. The fall in stock prices comes despite Alphabet's overall revenue in 2025 surged 18% to $400 billion for the first time, Alphabet said, the company said.

Google's parent company announ...