The Nasdaq Composite dropped roughly 1-2% in trading sessions tied to fresh AI capital expenditure disclosures, with Alphabet’s earnings report serving as the main catalyst. The company raised its 2026 capex guidance to a range of $195B to $205B, up from a prior estimate of $180B to $195B. Tesla added fuel to the fire with its own elevated AI spending plans.
The bill is getting larger, and the revenue is not keeping up
Hyperscalers, the mega-cap tech companies building AI infrastructure at industrial scale, are now projected to spend somewhere between $500B and $700B on AI-related capital expenditure in 2026 alone. Some estimates have already crossed $527B, up from $465B just months prior.
AI capex concerns have driven multiple sessions of downside pressure on the Nasdaq throughout June and July of 2026, creating a persistent ceiling on tech valuations. Chipmakers and mega-cap names have absorbed the brunt of those rotations, as money flows out of growth bets and into sectors with more predictable return profiles.
Crypto caught in the crossfire
