Wall Street focused on one number: an additional $15 billion in planned capital expenditures for 2026, pushing expected AI infrastructure spending to as much as $205 billion.
The move raised fresh concerns that the AI arms race is consuming cash faster than it can generate returns.
But while investors rushed for the exits, Bank of America Securities analyst Justin Post argued the selloff may have missed the bigger story.
The analyst reiterated his Buy rating and $430 price objective, implying a nearly 30% upside from where the stock traded on Thursday.
Post indicated that Alphabet’s latest results offered evidence that its AI investments are already generating measurable returns rather than simply inflating costs.
