Nasdaq slips on AI spending fears as Alphabet and Tesla earnings rattle investors

The Nasdaq Composite dropped roughly 1-2% as Alphabet raised its 2026 capex guidance to $195B-$205B and Tesla announced elevated AI spending plans, fueling investor fears that AI spending is outpacing revenue. Bitcoin fell about 1.8% to $64,800 and Ether dropped 3% to $1,870 amid the risk-off sentiment. Hyperscalers are now projected to spend $500B-$700B on AI capex in 2026, up from $465B months prior.

Nasdaq slips on AI spending fears as Alphabet and Tesla earnings rattle investors 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. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .