[Alphabet Falls 15% from Peak as AI Advantage Questioned by Market] For most of the past year, Alphabet (GOOG.O) was one of the most sought-after large-cap tech stocks, with investors betting it would be the most likely winner in the artificial intelligence boom. On May 13, Alphabet's stock price rose 3.9%, hitting an all-time high. In the previous year, the stock had surged over 150%, ranking among the top 25 performing stocks in the S&P 500 and far outperforming other companies in the "Big Seven" tech giants. However, this momentum subsequently reversed, due to concerns about talent drain from Google's parent company and anxieties about the company's waning dominance in artificial intelligence. The stock fell 15% from its peak, wiping out $692 billion in market capitalization and becoming the second-largest drag on the S&P 500 during the same period. The core reason for this sell-off is that Alphabet's position in the AI race has suddenly become less secure. The company's massive investments in AI development infrastructure and the delayed release of its new Gemini AI model have both dampened investor confidence.
