Big Tech's Rising AI Capex Weighs on S&P 500; Alphabet Raises Forecast to $205B, Tesla Eyes $25B+ Spend

According to Michael Burry, last week's earnings announcements from Big Tech companies revealed a market turning point on artificial intelligence spending. Alphabet raised its fiscal 2026 capex forecast to $195-205 billion from $180-190 billion, with shares falling 7%, while Tesla raised guidance to over $25 billion for the year, prompting a 15% stock decline. Burry highlighted Bloomberg data showing that Big Tech firms with the largest capex commitments—including Alphabet, Microsoft, Amazon, Meta, Oracle, Micron, and Tesla—have detracted from S&P 500 performance since June. Apple, by contrast, has been the sole major positive contributor amid its comparatively restrained AI spending strategy. Year-to-date, Apple leads with a 22.5% gain, outpacing Nvidia's 10.91% and significantly outperforming other mega-cap tech stocks.
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