AI Build-Out Takes a Toll on Big Tech as Suppliers Rally

Alphabet, Microsoft, Amazon, Meta and Tesla—the top AI spenders—fell on the week as capital expenditures outpaced cash flow, with Alphabet's free cash flow turning negative after capex nearly doubled to about $45B; Tesla also slid after an earnings miss despite rising revenue, squeezing margins. In contrast, AI-hardware suppliers—memory makers, server builders, and data-center landlords—rose about 11%, Nvidia gained about 2%, and the market finished near flat as the Magnificent Seven retreated and the rest of the S&P 500 rose. Next week features earnings from Microsoft, Meta, Amazon, and Apple, plus a Federal Reserve decision.