Alphabet's $205B AI capex stuns Wall Street as oil tops $95

Alphabet shares sink after hours on $205bn capex plan Alphabet reported better-than-expected Q2 revenue of $119.8 billion, fueled by 82% cloud growth, but shares fell roughly 5% in extended trading after management raised its full-year capital expenditure forecast to as high as $205 billion, intensifying investor scrutiny of the returns from massive AI investments. 12

Oil prices surge toward $95 on worsening Middle East conflict Brent crude briefly topped $95 a barrel after Houthi attacks on Saudi tankers in the Red Sea and President Trump's threats to strike Iranian infrastructure. The rally stoked fresh inflation fears, pushed energy stocks higher, and weighed on rate-sensitive sectors throughout the session. 234

Tesla revenue beats estimates but profits miss on weak margins Tesla reported $28.2 billion in revenue, beating expectations, but adjusted earnings per share of $0.33 badly missed the $0.53 consensus estimate. Free cash flow turned deeply negative as the EV maker ramped up spending on AI infrastructure, the Optimus robot, and the Cybercab platform. 56

Super Micro Computer rockets 25% as profit margin outlook improves The AI server maker surged after raising its Q4 gross margin guidance to 15–17% from roughly 8.3% and disclosing a record order backlog exceeding $60 billion. The strong quarterly outlook provided a bright spot in a week otherwise dominated by AI spending concerns. 78

Southwest rallies on record revenue, AT&T rises on profit beat Southwest Airlines surged after reporting its highest-ever quarterly revenue of $8.4 billion and an earnings beat that crushed estimates despite nearly $900 million in additional fuel costs. AT&T also rose on a stronger-than-expected profit and plans to accelerate roughly $10 billion in shareholder returns this year via buybacks. 49