Alphabet Climbs Toward $4T As Nvidia Falls On AI Trade Shift

Benzinga

Alphabet gained as Meta reportedly explored spending billions on Google’s AI chips, pushing the stock closer to a $4 trillion valuation, while Nvidia fell amid competition concerns and defensive messaging over accounting comparisons. Investors are rotating positions in the AI trade as Alphabet benefits from strength in cloud, chips, ads, and search. Broader markets are supported by rising expectations of a Fed rate cut, tariff relief, and progress on a Ukraine peace deal.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street.

00:02Alphabet rose, and Nvidia fell on Tuesday as investors shifted positions in the AI trade,

00:08according to the Wall Street Journal. Alphabet edged closer to a $4 trillion valuation

00:13after reports that Meta is in talks to spend billions on Google's AI chips.

00:18Nvidia slid after reaching a $5 trillion valuation weeks ago and has dropped 12% this month,

00:23while Alphabet has gained 15%. Investors rewarded Alphabet for its AI work,

00:29cloud and chip production, and strong advertising and search businesses.

00:33Nvidia and several other AI-linked stocks declined as concerns grew about competition,

00:39spending, and circular financing. Nvidia also circulated a memo rebutting comparisons to

00:44past accounting scandals, which analysts said made the company seem defensive.

00:49Gore Sahakian, chief investment officer of the Hovnanian Family Office,

00:53said stocks are rising on expectations of a Fed rate cut, hopes for a Ukraine peace deal,

00:58and easing tariffs, while noting that the Trump administration is working to address prices.

01:03For all things money, visit Benzinga.com.

Category

Transcript

Be the first to comment

Recommended