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Alphabet's Q2 Cash Flow Turns Negative Amid AI Investment Boom
According to Nomura Asset Management portfolio manager Brad Warden, Alphabet's second-quarter cash flow turned negative due to surging spending on artificial intelligence computing power. Warden, whose fund holds positions in Nvidia, Alphabet, Microsoft, and Amazon, stated that companies investing heavily in AI will ultimately generate returns from these expenditures, though investors must endure near-term pressure while waiting for economic benefits to materialize.