Alphabet, Tesla Earnings Test AI Rally Next Week as Chip ETFs Slide Up to 10%
Updated
Updated · CNBC · Jul 17
Alphabet, Tesla Earnings Test AI Rally Next Week as Chip ETFs Slide Up to 10%
3 articles · Updated · CNBC · Jul 17
Summary
Alphabet and Tesla report next week into a market pullback, with investors treating Alphabet as the first major read on whether AI spending can keep supporting stocks.
More than 10% has been wiped from the SOXX semiconductor ETF this week, while IBM logged its worst day on weaker software demand, sharpening concern that the AI trade may be overheating.
Alphabet is expected to show faster cloud growth and signal higher 2027 capital spending—possibly around $300 billion—key markers for chip demand after reports it delayed its flagship AI model.
Markets have stayed relatively resilient despite oil moving back above $80 and renewed U.S.-Iran hostilities, with equal-weight stocks and small caps still broadening the rally; the Russell 2000 ETF is up 19% this year.
That resilience is being underpinned by a strong start to earnings season, with S&P 500 profit growth projected above 20%, leaving next week's tech results as a crucial test of whether fundamentals can outweigh macro and AI-spending fears.