Venture capitalist Vinod Khosla criticized Stanford students who walked out during Alphabet Inc. Google CEO Sundar Pichai's commencement address on Sunday, calling their protest 'idiotic' and 'selfish.' The disruption occurred at Stanford University's 135th commencement ceremony, attended by more than 20,000 people. Khosla's comments highlight the growing tension between tech industry leaders and student activists over military contracts and AI ethics.

Stanford Graduation Walkout

As Pichai began speaking, approximately 100 to 200 students stood up, exited the venue, waved Palestinian flags, and chanted 'Free Palestine.' The protest was organized by student groups, including Students for Justice in Palestine and No Tech for Apartheid. These groups accused major tech firms of contributing to military and surveillance systems. In a statement, protesters declared, 'We don't need another tech billionaire to tell us how to get rich off of the killing and surveillance of Palestinians.'

The criticism centered on Project Nimbus, a $1.2 billion cloud and AI contract between Google and the Israeli government. Protesters also cited additional contracts with U.S. agencies, such as Immigration and Customs Enforcement and the Department of Homeland Security, as reasons for their demonstration.

Khosla Responds to Protest

Khosla responded on X, labeling the students' actions as 'biased, idiotic, short-sighted and very selfish.' He argued that the protesters were ignoring 'the bottom 3 billion people on this planet that could benefit from AI' in favor of 'misinformed selfish self-interest.' Khosla emphasized the potential of AI to provide equality and freedom for humanity, a vision he believes Pichai and Google have pioneered.

Khosla Warns AI Could Replace Jobs

Separately, Khosla has previously stated that AI could automate around 80% of jobs by 2030. He predicted this shift would drive major deflation, higher productivity, and a long-term move away from traditional employment. Khosla argued that AI would reduce the value of human labor, forcing governments to rethink taxation and wealth distribution. He suggested that AI-driven efficiency could increase global purchasing power by 2040, necessitating a realignment of capital gains and income taxation systems due to shrinking labor income.

Alphabet Inc. stock rose more than 3% on Monday as investors returned to mega-cap technology stocks amid a broad risk-on rally. The tech-heavy Nasdaq gained 3.02%, while the S&P 500 advanced 1.75%. Investor sentiment improved after the United States and Iran signed a peace agreement that ended hostilities and set the stage for the reopening of the Strait of Hormuz, easing concerns over global energy supplies. Crude oil prices fell roughly 5% to two-month lows, while Treasury yields declined to one-month lows.

Google Announces $1.5 Billion Alabama Data Center Expansion

Separately, Alphabet’s Google on Monday announced a $1.5 billion investment for 2026 and 2027 to expand its data center campus in Jackson County, Alabama. The facility, which has operated since 2019 on a repurposed former coal plant site, supports the company’s digital services and regional economic growth. As part of the expansion, Google will fund 100% of the project’s power and infrastructure costs.

The company also launched a $2 million Energy Impact Fund with the Tennessee Valley Authority and CAANEAL to support local energy-efficiency and weatherization programs. Google further pledged $550,000 for STEM education kits for fourth- through eighth-grade students. The company said the new initiatives build on its existing efforts in Alabama, including water stewardship projects, digital skills training for more than 130,000 residents and the creation of hundreds of jobs.

Technical Picture Remains Constructive

From a longer-term perspective, Alphabet continues to trade in an established uptrend. The stock remains about 20.6% above its 200-day simple moving average of $307.94 and roughly 10.3% above its 100-day moving average of $336.66. Shares also remain above the 50-day moving average of $362.26. However, near-term momentum has softened. The stock is trading about 1.3% below its 20-day moving average of $376.42, suggesting a period of consolidation following its recent advance.

The moving average convergence divergence indicator remains below its signal line, indicating that upside momentum has cooled even as the broader trend remains positive. Key resistance sits near $408.50, close to the stock’s 52-week high of $408.61. Key support is around $319.50, a prior demand zone that could attract buyers if the stock weakens.

Earnings And Analyst Outlook

Wall Street expects Alphabet to report second-quarter results on July 22. Analysts forecast earnings of $2.87 per share, up from $2.31 a year earlier. Revenue is projected to reach $113.54 billion, compared with $96.43 billion in the prior-year period. The stock carries a consensus Buy rating and an average analyst price forecast of $423.46.

Recent analyst actions include a Buy rating and $450 price forecast from Needham, a Buy rating and $420 price forecast from HSBC, and an Overweight rating with a $445 price forecast from Piper Sandler. Alphabet shares were up 3.31% at $371.60 at the time of publication on Monday.