AI demand remains strong, but the market is becoming more selective. Investors are no longer rewarding companies simply for higher AI spending they want clear evidence that these investments will drive stronger earnings and cash flow. Alphabet's increased AI capex may weigh on near-term cash flow, but it also reflects management's confidence in the long-term AI opportunity. With earnings season, central bank decisions, and geopolitical risks likely to keep markets volatile, pullbacks in fundamentally strong AI and semiconductor companies could present attractive opportunities for long-term investors.