Today’s 12.29% drop in Alphabet ($GOOG) is disproportionate to the fundamentals of their business. Total revenue growth is +24.7%. Operating income growth is +29.9%. Google Cloud growth is exceptional at +102.6%. Trailing P/E is 14.6×, forward P/E is 20.3×, and PEG is 1.06. So why the sudden fear? Because Google is spending more on AI infrastructure. This fear would make sense if AI infrastructure was just some side quest. But in actuality, if they don’t spend money on AI infrastructure—and do so heavily—it’s their core business that is threatened because the biggest threat to search is AI. Google cannot protect its search business simply by preserving its existing margins. AI has already changed how people find information—whether you agree with this change or not. The toothpaste has now exited the tube and will not go back in. So failing to invest in AI infrastructure would be more damaging for them than spending aggressively on it.