Investors pushed two of the market’s biggest artificial-intelligence names in opposite directions on Tuesday, highlighting shifting sentiment inside the AI trade. Alphabet rose more than 1%, extending a months-long rally that has brought the Google parent closer to a US$4 trillion valuation, powered by optimism around its AI tools, cloud services and growing chip capabilities.
Via Wall Street Journal summary.
In contrast, Nvidia shares fell 2.6%, adding to a slide that has pulled the world’s largest company by market value further below the US$5 trillion mark it reached only weeks ago.
The divergence came after reports that Meta Platforms is in talks to spend billions on Google’s AI chips, one of the few viable alternatives to Nvidia’s industry-dominant processors. That news underscored the competitive pressures facing Nvidia and sharpened concerns already building among investors about circular AI spending, capital intensity, and rising rivalry within the sector.
This month’s performance gap reflects that unease: Alphabet is up about 15%, while Nvidia is down roughly 12%, as investors reassess leadership in the next phase of the AI boom.
