Alphabet and Tesla report July 22 as AI spending hits $190B

Alphabet and Tesla report second-quarter results July 22, with Alphabet's AI spending trajectory and Tesla's Bitcoin position in focus.

"If Alphabet announces any type of pullbacks with respect to the spending that they're forecasting around AI, you could see ripple effects across the entire AI ecosystem," Kevin Mahn, president and chief investment officer at Hennion & Walsh Asset Management, said.

Alphabet's capital expenditure guidance for 2026 sits between $180 billion and $190 billion, more than double the prior year. The Google parent completed an $80 billion equity raise in June, with Berkshire Hathaway contributing $10 billion, specifically earmarked for AI initiatives including its Gemini model family and cloud infrastructure. Analysts polled by LSEG expect Alphabet to report earnings and revenue growth of more than 20% for the quarter. The company has topped earnings expectations for 13 straight quarters.

Tesla holds 11,509 Bitcoin valued between $745 million and $895 million, depending on the price at measurement. That position generated unrealized losses of between $173 million and $222 million in the first quarter under current FASB fair-value rules, which require companies to mark crypto positions to market each reporting period. Tesla shares are down roughly 15% year to date as of mid-July. Analysts expect the EV maker's earnings to have grown 25% from a year earlier, according to LSEG.

The reports arrive as the second-quarter earnings season accelerates, with 77 S&P 500 companies posting results this week. Of the roughly 50 companies that have reported so far, 88% have exceeded analyst expectations, according to FactSet. The S&P 500 is up about 9% in 2026, standing 2% below its early June record high.

Alphabet's cloud revenue growth rate and any updated capex guidance will be the key variables for investors assessing whether its AI investments are converting to meaningful revenue. For Tesla, the critical question is whether management addresses its Bitcoin strategy or signals any change in digital asset holdings. Both reports drop after the US market close, meaning crypto markets, which trade continuously, will be the first venue to price in the reaction.

This article is for informational purposes only and does not constitute investment advice.