Why Does Alphabet Drop While NVIDIA Rises?
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.
NVDA sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for NVDA moved above the 200-day moving average on June 27, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for NVDA just turned positive on June 25, 2025. Looking at past instances where NVDA's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 368 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 324 cases where NVDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
NVDA broke above its upper Bollinger Band on June 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (45.872) is slightly higher than the industry average of (9.257). P/E Ratio (50.965) is within average values for comparable stocks, (63.080). Projected Growth (PEG Ratio) (1.959) is also within normal values, averaging (2.334). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (26.316) is also within normal values, averaging (33.448).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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