Key facts
- Alphabet's revenue rose 24% to $119.8 billion, exceeding expectations.
- Alphabet increased its 2026 capital spending forecast to $195 billion-$205 billion due to AI demand.
- Chip stocks, particularly in Asia like Samsung and SK Hynix, saw gains following Alphabet's announcement.
- Bitcoin was trading around $65,400, with Ether near $1,916.
- Oil prices continued their upward trend.
Bitcoin traded near $65,400 on Thursday, showing a slight daily decrease but a weekly gain, according to CoinDesk data. The market remained relatively stable during Alphabet's earnings announcement, which was closely watched for insights into artificial intelligence spending.
Alphabet reported a 24% increase in revenue to $119.8 billion and an 82% growth in its cloud division, both surpassing expectations. However, the company revised its 2026 capital expenditure forecast upward to between $195 billion and $205 billion, citing a "supply-constrained" environment for AI demand. This increased spending, coupled with a reduction in free cash flow, led to a post-hours stock decline.
Despite potential shareholder concerns over the higher expenditure, the increased investment in AI infrastructure has been a key driver for the rally in chip stocks. Asian chipmakers experienced a rise on Thursday, with the Kospi index up 3.6% and both Samsung and SK Hynix gaining over 2% on expectations of capturing a share of this AI-related spending.
Major cryptocurrencies like Ether held steady near $1,916, XRP at $1.13, and Solana at $77, with Hyperliquid being a notable outlier, down 11% for the week. Meanwhile, oil prices continued to climb, extending a rally that began in July and has reignited inflation concerns.
Investors are now looking ahead to the Federal Reserve's policy meeting on July 28-29 for further market direction. Experts highlighted market sentiment, ETF flows, and institutional activity as key factors driving Bitcoin's recent move above $65,000. Softer US inflation data has improved risk appetite for assets like cryptocurrencies, and consistent inflows into Bitcoin spot ETFs are seen as a positive indicator. However, caution is advised as it remains uncertain whether this represents a sustained upward trend, with key support levels at $62,500 and resistance around $65,500-$66,000.