EOD recap - 22 Jul 26

NY session was a chop with everyone clearly awaiting $GOOG results. OAI also announced a raise of spending to 750b from 600b through 2030...more capex...
Let's go over the $GOOG results.
First of all, semianalysis posted a tweet about $GOOG cloud earnings being primarily from TPU sales and hence it is becoming a hardware player. That could not be further from the truth. They simply misread the transcript. What it is saying is that $GOOG cloud earnings are split into product (mainly TPU sales) and services line (selling cloud services). Of course the product revenues will mainly come from TPUs. That is NOT the same as Google Cloud revenues coming from TPUs. This is an elementary error. really rookie.
Next, it was already announced in Apr that most of the TPU sales will only be recognised as revenues in 2027....
Moving on, most people would have analysed the results. I wont go over it. Except that $GOOG cloud revenues grew 80%+ instead of at 60%+ which is a massive beat. Not only that, but margins grew to 35% from 20%.
This is directly bullish for compute. Also it speaks volume about the shortage of compute that i have been talking about over the last 2 months.
I would read the entire earnings as being bullish for the AI buildout and compute players in general.
Neocloud summer.