Hyperscalers AI Capex & Market Spooked; Alphabet/Tesla Earnings Disappoint; Google EU Fine; NVIDIA Supply Deals Provide Counter-Narrative

Alphabet and Tesla earnings disappointed on AI capex and negative FCF, triggering market selloff. Google Cloud revenue $24.8B (+82%) but $200B spending plan raises ROI concerns. EU fined Google €890M. Reddit data access tension. Tesla cash burn confirmed (negative FCF, $25B+ capex) with 14% sell-off. Hyperscaler FCF plunge risk remains. S&P 500 earnings ex-Alphabet/Micron still show 17.6% growth, challenging the AI-only narrative. Digital Realty (DLR) surged on AI data center demand, a positive signal for infrastructure plays. Neocloud stocks (CoreWeave, Nebius) are catalysts as Google expands third-party compute. Earnings beats at a 5-year high but stocks still falling, reinforcing the market's focus on AI capex efficiency and FCF. NVIDIA's $1B Korea AI factory and $500B HBM deal with SK Hynix provide a counter-narrative to capex concerns, showing continued long-term investment in AI infrastructure. A Seeking Alpha bull thesis argues Alphabet is cheap after the selloff, directly addressing AI capex concerns. The $950B+ Korean partnerships further support long-term AI infrastructure investment. Another Seeking Alpha article picks Lumentum and Celestica as beneficiaries of Google's rising AI spending, but warns of high valuations and market selectivity. Citi raised S&P 500 target to 8,100 but downgraded tech to neutral, overweight cyclicals, noting one-time items boosting beats. New: Google's Q2 earnings revealed precise revenue figures but vague click data, with third-party data showing CTR drops from AI Overviews. A separate article details how AI Overviews are starving publishers, with traffic collapses of 30-50% and mounting lawsuits, adding structural risk to Google's ad business.