Why Nvidia Stock Isn't Rallying as It Should After Alphabet Earnings -- Barrons.com

By Jack Denton

Nvidia stock fell Thursday following Alphabet's earnings report, even though the Google parent told investors it was significantly raising its guidance for capital expenditures.

Investors may be prioritizing chip and memory specialists in a rotation out of the biggest technology names.

Nvidia stock slid 1.6% for the day. Shares in Micron and SK Hynix jumped 3.2% and 2.6%, respectively.

Much of that new money from Alphabet will be focused on building out artificial intelligence infrastructure, including chips and memory, allaying fears among chip makers that sky-high prices and spending won't last.

All of this should be good news for Nvidia, but the stock wasn't immediately reflecting that.

A recent trend has seen investors sell chip stocks to buy the biggest tech names. Sentiment on spending could see investors instead go back to doubling down on specialist chip and memory names, such as Micron and SK Hynix, and by doing so selling off holdings in the biggest technology names -- like Nvidia.

While Nvidia is a chip powerhouse, its rise to become one of the world's most valuable public companies has established it as a Big Tech stock to be rotated out of in favor of smaller names.

Despite Alphabet's blowout results, the stock was under pressure -- down 7.1% -- amid concerns over its capital expenditures.

Write to Jack Denton at jack.denton@barrons.com

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July 23, 2026 16:39 ET (20:39 GMT)