{"slug": "google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-in-of", "title": "Google and Tesla lost half a trillion dollars this week as their suppliers cashed in: Chart of the Day", "summary": "Alphabet and Tesla lost a combined $580 billion in market value this week as investors punished heavy AI spending, while suppliers like Supermicro Computer and Digital Realty surged on the same capital outlays. Alphabet's capital spending doubled to nearly $45 billion, pushing free cash flow negative for the first time as a public company, and Tesla's operating margin fell to 1.4% from 4.1% a year ago. The five biggest AI spenders fell an average of 9%, while a basket of their suppliers rose 11%.", "body_md": "# Google and Tesla lost half a trillion dollars this week as their suppliers cashed in: Chart of the Day\n\nWall Street spent months buying the AI build-out. This week, it started asking who actually pays for it.\n\nAlphabet ([GOOG](https://finance.yahoo.com/quote/GOOG/), [GOOGL](https://finance.yahoo.com/quote/GOOGL/)), Microsoft ([MSFT](https://finance.yahoo.com/quote/MSFT/)), Amazon ([AMZN](https://finance.yahoo.com/quote/AMZN/)), Meta ([META](https://finance.yahoo.com/quote/META/)), and Tesla ([TSLA](https://finance.yahoo.com/quote/TSLA/)) — the five biggest spenders on artificial intelligence — fell an average of 9%.\n\nA basket of the firms they buy from — the memory makers, server builders, and data center landlords — rose an average of 11%.\n\nEven Nvidia ([NVDA](https://finance.yahoo.com/quote/NVDA/)) landed on the winning side. The chipmaker rose 2% and added roughly $100 billion in market value, about what Microsoft and Apple lost combined.\n\nStart with the losers, because their problem is the whole story.\n\n[Alphabet knocked it out of the park](https://finance.yahoo.com/technology/article/google-q2-earnings-top-expectations-cloud-revenue-grows-82-but-stock-falls-on-capex-growth-202407124.html) and beat on almost every line this week. Revenue grew 24%, and its cloud business grew 82%. The stock fell 8% anyway, shedding about $330 billion in market value.\n\nThe reason was cash. Capital spending doubled to nearly $45 billion and outran the cash the business brought in, pushing Alphabet's [free cash flow](https://www.investopedia.com/terms/f/freecashflow.asp) below zero for the first time as a public company. Management then raised its spending plans again and declined to say how high they would go in 2027.\n\n[Tesla reached the same place](https://finance.yahoo.com/markets/stocks/article/tesla-reports-q2-earnings-miss-but-beats-on-revenue-cap-ex-spending-seen-at-25-billion-for-the-year-110300122.html) from the other direction. Revenue beat, earnings missed badly, and operating margin fell to 1.4% from 4.1% a year ago. The stock lost 18% and about $250 billion, its worst week since 2022.\n\nGoogle spent too much. Tesla earned too little. The market handed both the same grade.\n\nThe other side of that trade got paid for the exact spending Alphabet got punished for.\n\nSupermicro Computer ([SMCI](https://finance.yahoo.com/quote/SMCI/)), which builds AI servers, jumped 25% after disclosing more than $60 billion in new orders in a single quarter.\n\nDigital Realty ([DLR](https://finance.yahoo.com/quote/DLR/)), a data center landlord, rose nearly 15% on a record leasing backlog — and raised its own spending plans this week without being punished at all. The difference is that its build-out is already leased.\n\nNone of this moved the broader market. Roughly $880 billion left the Magnificent Seven while the rest of the S&P 500 gained about $165 billion, and because the losses were concentrated in a handful of giant names, the index finished the week close to flat. From the outside, nothing happened. Underneath, [the money changed hands](https://finance.yahoo.com/markets/article/a-violent-ai-unwind-is-hiding-beneath-a-resilient-stock-market-chart-of-the-day-100000350.html).\n\nThe catch is that the winners are still climbing out of a hole.\n\nThe memory and storage names leading this week's bounce spent the past month getting crushed, and chip stocks as a group remain nearly 20% below their June record even after clawing back to the closely watched 12,000 level on the PHLX Semiconductor Index ([^SOX](https://finance.yahoo.com/quote/^SOX/)). The rebound has been real but not yet convincing.", "url": "https://wpnews.pro/news/google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-in-of", "canonical_source": "https://ca.finance.yahoo.com/news/google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-cashed-in-chart-of-the-day-121403846.html", "published_at": "2026-07-25 12:14:03+00:00", "updated_at": "2026-07-25 12:22:31.449616+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-startups"], "entities": ["Alphabet", "Tesla", "Microsoft", "Amazon", "Meta", "Nvidia", "Supermicro Computer", "Digital Realty"], "alternates": {"html": "https://wpnews.pro/news/google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-in-of", "markdown": "https://wpnews.pro/news/google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-in-of.md", "text": "https://wpnews.pro/news/google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-in-of.txt", "jsonld": "https://wpnews.pro/news/google-and-tesla-lost-half-a-trillion-dollars-this-week-as-their-suppliers-in-of.jsonld"}}