Alphabet closed out the fourth quarter with results that exceeded Wall Street forecasts, delivering stronger-than-expected earnings and revenue. Its cloud division stood out in particular, posting a remarkable jump of nearly 48% in sales compared with a year earlier, underscoring the company’s growing strength in enterprise computing.

The company also signaled that its spending plans are set to surge. Alphabet said it expects capital expenditures in 2026 to range between 175 billion and 185 billion dollars, which would represent more than double last year’s level at the top end of that estimate. The prospect of such massive investment unsettled the market, sending Alphabet shares down as much as 3% in after-hours trading.

The broader artificial intelligence sector has had a rough week on Wall Street. Shares of Advanced Micro Devices plunged 17.3% during regular trading after the chipmaker issued a weaker-than-expected outlook for the first quarter. Other companies closely tied to AI infrastructure, including Broadcom and Oracle, also saw their stocks decline.

Overall market performance was mixed. The Nasdaq Composite dropped 1.51%, while the S&P 500 fell 0.51%, marking its fifth losing session in six days. By contrast, the Dow Jones Industrial Average edged up 0.53%, helped by gains in Amgen and Honeywell.

Despite the recent pullback in AI-related stocks, CNBC Investing Club founder Jim Cramer remains upbeat about South Korea’s leading semiconductor firms. Speaking on CNBC’s “Squawk Box Asia,” he praised Samsung Electronics and SK Hynix as forward-looking and innovative companies, saying he would have been eager to work for them if he lived in South Korea.

Oil prices slipped about 1% after reports that U.S. and Iranian officials are scheduled to hold talks in Oman on Friday, adding uncertainty to the global energy market.

Meanwhile, Venezuela told China that its crude pricing policy would not be dictated by Washington, and Russia reiterated that India has not committed to halting oil imports from Moscow, despite earlier comments from former President Trump suggesting otherwise.

In geopolitical developments, China’s Hong Kong and Macao Affairs Office warned that Panama would face serious consequences if it does not “change course.” The statement came after Panama’s Supreme Court invalidated a port operating license held by Hong Kong-based CK Hutchison at both ends of the Panama Canal, a move widely interpreted as aligning with Trump-era policy.

In Washington, Senator Tim Scott said he does not believe Federal Reserve Chair Jerome Powell committed any wrongdoing during his Senate testimony last year. At the same time, Senator Thom Tillis reaffirmed that he will continue blocking Kevin Warsh’s nomination to lead the Fed until an investigation into Powell is concluded.

The U.S. trade representative announced plans to establish price floors for critical minerals in coordination with Mexico, the European Union, and Japan. The Trump administration has made securing these resources a central pillar of its trade strategy in an effort to reduce reliance on China.

On Wednesday, U.S. equity markets were mostly lower, with technology stocks weighing heavily on the S&P 500. In Europe, the Stoxx 600 index was largely flat, but shares of Danish pharmaceutical giant Novo Nordisk plunged 17.2%.

Analysts have also raised fresh concerns about AMD’s profitability, pointing to rising operating costs and slimmer margins, fueling debate about the company’s long-term financial trajectory.

Finally, when it comes to artificial intelligence, the conversation in China often differs from that in the West. Rather than asking which country will dominate the AI race, many Chinese companies are focused on a more practical question: which AI tools can help them stay competitive in a challenging economic environment.

For investors, this suggests that betting solely on technological superiority may miss a larger story about how AI is being used in real-world business survival and adaptation.