Alphabet’s Google stock (NASDAQ: GOOG) has been in a sorry state of affairs on the charts since May 2026. The global search giant had reached a high of $408 in mid-May, never to reclaim its lost territory. GOOG fell to a low of $328 on Wednesday’s closing bell, sparking fears that a dip below the $300 level could be on the cards. Several analysts have pointed out that the leading equity is yet to bottom out, and the downturn could continue.
In addition, Alphabet’s announcement of an increase in AI spending from $180 billion to $205 billion to build its infrastructure is among the reasons why Google stock is unsustainable in the indices. GOOG has plunged nearly 8% in a month, falling from $355 to $328. The equity is attracting bearish sentiment, despite Warren Buffett’s Berkshire Hathaway displaying confidence in the company’s AI prospects.
Also Read: New Google Stock Price Prediction From Bank of America Securities
Google Stock: AI Chip Business Twice as Large as Competitors, Says Cloud CEO
Thomas Kurian, the CEO of Google Cloud, made a bold claim about Alphabet’s AI chip production. During Goldman Sachs’ Communacopia conference, Kurian said that Google’s AI chips will be twice as large as those of its competitors. “The size of our accelerator business, our TPU business, is more than twice that of the next-largest hyperscaler,” he said. This statement of his can assure Wall Street that Google stock could be primed for a major price rise.
Alphabet will have to take on other AI giants such as Amazon and Microsoft. While Amazon has developed in-house Trainium AI accelerators, Microsoft has developed Maia AI chips. Amazon is already ahead of Microsoft, as the company has begun selling the AI chips to outside customers. Google will need to scale up production and sales for its stock to reclaim the $400 level. The race to the top is tight, with AI technology evolving every day.