Nvidia Struggles Despite Alphabet’s $180B Capital Investment Push

Nvidia shares experienced a notable dip of 2.27%, closing at $175.47, despite a surge in buying interest after hours. The decline came amidst broader selling pressure in high-growth technology stocks, and even after Alphabet’s announcement to significantly increase its capital expenditure to $180 billion this year. Alphabet’s spending plan is largely aimed at expanding data-center capacity and AI infrastructure, reinforcing long-term demand for advanced chips. While this underpins Nvidia’s structural demand outlook, it did little to lift Nvidia’s stock during regular trading hours.

Despite Alphabet’s growing use of in-house AI accelerators, Nvidia remains a critical supplier for Alphabet’s ecosystem. Google Cloud, for instance, continues to rely on Nvidia GPUs for AI training and inference services, and Nvidia hardware still plays a key role in Google’s internal data-center operations. Alphabet’s massive capital expenditure plans underscore the expanding demand for AI workloads, which Nvidia is well-positioned to serve.

However, market sentiment surrounding Nvidia remains mixed. Traders are weighing long-term optimism against near-term concerns, with some hesitation driven by regulatory uncertainty and issues related to Nvidia’s China business. Stocktwits data revealed neutral sentiment, reflecting the market’s caution ahead of clearer signals on earnings momentum and future regulatory developments.

While Nvidia saw some buying interest after hours, technical indicators show the stock is struggling to recover from an extended downtrend. The price action remains downward, and short-term moving averages are clustered around the current price, suggesting potential consolidation. If the stock breaks below key support levels, further declines could be in store. Traders should watch for volume confirmation and MACD crossover signals to determine if the recent bounce has lasting momentum.

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