Bitcoin and Ether also fell as risk-off sentiment spread from tech stocks to crypto markets
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 #
The selloff did not stay contained to tech stocks. Bitcoin fell approximately 1.8% to around $64,800 during the period of heaviest Nasdaq pressure, while Ether dropped about 3% to near $1,870. Neither move was driven by any crypto-specific catalyst.
Ether’s steeper decline, roughly 3% versus Bitcoin’s 1.8%, follows a familiar pattern. When risk sentiment deteriorates, Ether tends to move more aggressively than Bitcoin in both directions. That relationship held here.
What investors should watch next #
The key question heading into the rest of earnings season is whether any of the major AI spenders can pair their capex announcements with revenue guidance that justifies the outlay. A spending increase paired with strong cloud and advertising growth is a different story than a spending increase paired with flat or decelerating revenue.
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