Strong demand for the Silicon Valley company s chips used in artificial intelligence computing has powered the stock 231% in the past 12 months to record highs, taking its market value to $1.812 trillion. In comparison, Alphabet s market capitalization is $1.814 trillion.
The drop in Google s share price despite beating Wall Street estimates for profit and sales, shows how much investors want the company to deliver gains in artificial intelligence, and show the cloud business remains competitive against a more powerful Azure from Microsoft and Amazon.com s AWS.
The companys shares fell as much as 8.9% to $126.40 in New York, the biggest decline since October 2022. The shares had gained 57% so far this year through Tuesdays close. The company posted $44 billion in search advertising, beating the average analyst projection for $43.2 billion.The company was pleased with its advertising revenue growth after a period of “historic volatility,” Porat said on an investor call after the results.