Bitcoin holds near $65,400 as Alphabet AI spend lifts chip stocks
Alphabet’s decision to sharply increase its AI infrastructure spending pushed Asian semiconductor stocks higher on Thursday while leaving major cryptocurrencies in a tight range ahead of a critical Federal Reserve meeting.
Bitcoin traded near $65,400 on Thursday, down 0.3% on the day but holding a 1.4% weekly gain. The broader cryptocurrency market remained largely static as investors digested mixed signals from Alphabet’s latest earnings report.
The tech giant posted better-than-expected results, with revenue rising 24% to $119.8 billion and cloud revenue surging 82%. However, the company raised its 2026 capital spending forecast to a range of $195 billion to $205 billion, up from a previous estimate of $180 billion to $190 billion. Management attributed the increase to a "supply-constrained" environment as it races to build out AI capacity.
While Alphabet shares dropped in after-hours trading as investors weighed the heavier spending against slimmer free cash flow, the headline numbers provided a direct catalyst for semiconductor equities. Asian chipmakers captured the immediate upside, with South Korea's Kospi index climbing 3.6%. Both Samsung and SK Hynix gained more than 2% on expectations that they will secure a significant portion of the incoming AI infrastructure capital.
This divergence highlights a current market dynamic where capital is flowing directly into the physical builders of AI rather than broader risk assets. Major altcoins mirrored Bitcoin's lethargy, with Ether holding near $1,916, XRP at $1.13, and Solana at $77. The sole notable mover in digital assets was Hyperliquid, which dropped 11% over the week.
Beyond tech earnings, broader macroeconomic headwinds are keeping traders cautious. Oil prices continued their upward march through July, a rally that has revived anxieties about sticky inflation. This inflationary backdrop sets the stage for the next major market test: the Federal Reserve's two-day meeting concluding on July 29.
For market professionals, the immediate takeaway is a rotation within the technology ecosystem. Investors are rewarding the hardware supply chain poised to benefit from massive corporate AI budgets, while sidelining speculative digital assets until central bankers provide clearer direction on interest rates.
