The latest earnings from Tesla, Inc. (NASDAQ:TSLA) and Alphabet, Inc. (NASDAQ:GOOGL) offered investors two very different snapshots of the artificial intelligence trade, reigniting the debate over AI monetization vs. AI spending for ETF investors.
Alphabet demonstrated that its massive AI investments are translating into stronger cloud growth and Gemini adoption. Meanwhile, Tesla’s results highlighted that investors are still waiting for its ambitious bets on Robotaxi, Full Self-Driving (FSD) and Optimus humanoid robots to generate meaningful financial returns.
Alphabet Shows AI Investments Are Paying Off
In the second quarter earnings call, Alphabet revealed that the Gemini app now has 950 million monthly active users and raised its full-year capital expenditure forecast to $195 billion-$205 billion citing continued strong demand for AI infrastructure.
Ryan Lee, Senior Vice President of Product and Strategy at ETF issuer Direxion, said the results gave AI bulls what they wanted to see.
