SYDNEY — Global investors pushed a tech selloff deeper in Asian trading Thursday after Google parent Alphabet projected up to $185 billion in 2026 capital spending for artificial intelligence, dragging regional stocks lower and knocking Bitcoin toward $70,000. The spending shock revived doubts about when Big Tech will turn AI outlays into steady profit growth, and the risk-off move spilled into crypto, Feb. 5, 2026.
Asia stocks slide as the tech selloff widens
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.8%, with South Korea’s KOSPI down 3.9% and Taiwan’s benchmark off 1.1%. In a Reuters global markets report, the news agency described a rotation out of technology giants and into defensive names as investors reassessed high AI valuations.
Alphabet’s AI capex shock lands after strong results
Alphabet said it expects 2026 capital expenditures, or capex, between $175 billion and $185 billion, sharply above the roughly $115.26 billion analysts had been looking for and nearly double its $91.45 billion spend in 2025, according to LSEG data. Alphabet reported December-quarter revenue of $113.83 billion and said Google Cloud revenue jumped 48% to $17.7 billion.
“We are seeing our AI investments and infrastructure drive revenue and growth across the board,” Alphabet CEO Sundar Pichai said. The capex range and results were detailed in Reuters’ report on Alphabet’s outlook.
“That increase in (Alphabet) capex was absolutely enormous,” said Tony Sycamore, an analyst at IG. For traders already bruised by the tech selloff, it reinforced a skeptical “show me the payoff” mood.
The tech selloff hits chips and software
The tech selloff has not been limited to megacaps. Advanced Micro Devices tumbled 17% after a softer revenue outlook reignited doubts about its ability to take share from Nvidia in AI accelerators. In a separate Reuters report on AMD, the news agency also pointed to renewed pressure on software stocks after a new legal plug-in for Anthropic’s Claude chatbot that can automate routine tasks.
Reuters estimated about $830 billion in market value has been erased since Jan. 28 as the tech selloff rippled through software, semiconductors and other high-growth corners of the market.
Bitcoin nears $70,000 as risk appetite fades
Bitcoin fell more than 3% to about $70,052, its lowest level since November 2024. Analysts cited the broader risk-off tone and fresh concern that a smaller Federal Reserve balance sheet could weigh on speculative assets after the nomination of Kevin Warsh as the next Fed chair. “The market fears a hawk with him,” said Manuel Villegas Franceschi of Julius Baer. In a Reuters report on the crypto slump, the news agency said bitcoin is down more than 7% for the week and nearly 20% for the year, while ether is down close to 30% in 2026.
A spending story that has been building
Alphabet’s capex surge is the latest step in an AI spending climb investors have been tracking for a year. The company first rattled markets by projecting a $75 billion AI buildout for 2025, far above expectations, according to a Reuters report from February 2025. By late October, Alphabet had raised its 2025 capex outlook again to $91 billion to $93 billion as cloud demand surged, Reuters reported in October 2025.
Alphabet argues the AI buildout is already boosting cloud and ad performance, but markets are treating rising capex as an immediate hit to cash flow. Until investors see clearer proof that the spending wave is translating into durable profits, the tech selloff is likely to keep setting the tone for global risk assets.
