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.

Read more on Nvidia’s technical outlook, market sentiment, and key factors shaping its future trajectory.