NVIDIA Rallies Up and Alphabet Slides Down: Why?: By Serhii Bondarenko
NVIDIA Rallies Up and Alphabet Slides Down: Why?
NVIDIA's stock closed at $117.06, marking a 3.10% gain for the day, according to market updates shared on X. This upward movement aligns with NVIDIA's resilience in a volatile 2025, despite a year-to-date decline of approximately 15%. Several factors contributed to the chipmaker's strong performance on May 7.
First, NVIDIA continues to capitalize on robust demand for its AI-driven data center chips, particularly the Blackwell architecture. Recent reports indicate that major cloud providers like Amazon, Microsoft, and Alphabet are maintaining or increasing their capital expenditures (capex) for AI infrastructure, with Amazon projecting up to $105 billion and Alphabet reaffirming $75 billion for 2025. These commitments signal sustained demand for NVIDIA's GPUs, which remain the gold standard for AI applications. Investors appear reassured that concerns about a potential slowdown in AI spending—sparked earlier in the year by developments like DeepSeek's cost-efficient AI model—are overblown.
Second, NVIDIA's strategic initiatives are bolstering investor confidence. The company's push into AI cloud services, potentially competing with hyperscalers like Amazon and Microsoft, has sparked intrigue. Analyst Michael Elias from TD Cowen highlighted NVIDIA's 'large leasing deal' with Digital Realty for data center capacity, suggesting the company could outpace peers in data center leasing in 2025. Additionally, NVIDIA's upcoming Computex 2025 keynote by CEO Jensen Huang, scheduled for May 19, is expected to unveil further AI advancements, adding to the bullish sentiment.
Despite challenges like export restrictions to China and a $5.5 billion write-off for its H20 GPU, NVIDIA's forward-looking guidance remains strong. The company projects $43 billion in revenue for the first quarter of fiscal 2026, a 65% jump from the prior year, driven by Blackwell processor sales. With a forward price-to-earnings ratio of 25, NVIDIA's valuation appears attractive compared to its historical averages, making it a compelling buy for investors betting on AI's long-term growth.
Alphabet's Slide: Regulatory and Competitive Pressures Weigh Heavy
In stark contrast, Alphabet's stock plummeted, with GOOGL closing at $151.38, down 7.26% for the day. The sharp decline reflects a confluence of challenges that rattled investors on May 7.
A key driver of Alphabet's downturn was negative sentiment tied to regulatory scrutiny. Reports surfaced that the U.S. Department of Justice was considering breaking up Google's search business, citing antitrust concerns over its dominance in online search and advertising. This news, though not officially confirmed, spooked investors, as a potential breakup could disrupt Alphabet's core revenue streams. The threat of regulatory action comes on the heels of ongoing lawsuits and investigations into Google's practices, amplifying uncertainty.
Additionally, Alphabet faced competitive pressures in the AI race. While the company reaffirmed its $75 billion capex for 2025 to bolster AI capabilities, some investors worry that Google is lagging behind rivals like OpenAI and DeepSeek in generative AI innovation. Posts on X speculated that Alphabet might shift spending toward its proprietary TPUs (Tensor Processing Units) over NVIDIA's GPUs, potentially signaling a strategic pivot that could impact margins or AI performance. Moreover, DeepSeek's cost-efficient AI model, reportedly trained for a fraction of the cost of Google's models, raised questions about Alphabet's AI spending efficiency, further denting investor confidence.
Alphabet's stock was also caught in broader market volatility. The Dow Jones Industrial Average fell over 1%, and the Nasdaq oscillated amid concerns over Federal Reserve Chairman Jerome Powell's comments on tariffs and inflation. As a member of the 'Magnificent Seven,' Alphabet's 8.21%-8.42% drop (across GOOG and GOOGL tickers) was among the steepest, reflecting its vulnerability to macro and company-specific headwinds.
Market Context and Investor Sentiment
The contrasting performances of NVIDIA and Alphabet on May 7 highlight the tech sector's uneven recovery in 2025. While NVIDIA benefits from its unchallenged leadership in AI hardware, Alphabet is grappling with regulatory risks and competitive pressures in a rapidly evolving AI landscape. Social media posts on X captured the market's mood, with traders noting NVIDIA's 'holding strong' and Alphabet's drop compressing broader indices like the Nasdaq (QQQ) and S&P 500 (SPY).
Investors are also eyeing upcoming events that could further influence these stocks. NVIDIA's earnings report on May 28 is widely anticipated, with analysts predicting a potential beat driven by Blackwell chip sales and strong AI demand. For Alphabet, clarity on regulatory developments and AI strategy updates could dictate its near-term trajectory. Both companies remain integral to the AI revolution, but their paths are diverging as investors reassess growth prospects and risks.
Financial Learning Models (FLMs)
Tickeron, under the leadership of Sergey Savastiouk, CEO, has been pioneering the integration of AI into financial markets through its Financial Learning Models (FLMs). These models merge advanced technical analysis with artificial intelligence to enable traders to detect market patterns with greater precision. Among Tickeron's key offerings are user-friendly trading bots designed for beginners, high-liquidity stock robots for efficient trade execution, and real-time AI insights that promote transparency and control. Complementing these tools are the Tickeron AI Trading Bots and Double Agents—powerful features that help identify both bullish and bearish market signals, giving traders a dual perspective for balanced decision-making. By leveraging machine learning, Tickeron continues to enhance the capabilities of AI-powered trading, aligning with the broader trend of AI's expanding role in financial decision-making.
Looking Ahead
As of May 7, 2025, NVIDIA's upward momentum reflects its dominance in AI hardware and strategic agility, positioning it as a market darling despite earlier volatility. Alphabet, however, faces a tougher road, with regulatory clouds and AI competition casting shadows over its near-term outlook. While NVIDIA rides the AI wave, Alphabet must navigate choppy waters to regain investor trust.
For investors, the takeaway is clear: NVIDIA's growth story remains intact, but Alphabet's challenges warrant caution. As the tech landscape evolves, May 7 serves as a reminder that even giants can move in opposite directions when innovation, policy, and market sentiment collide.
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