Wall Street Mixed as AI Hardware Rotation Hammers Nvidia; Alphabet Scores Record Before Pullback
U.S. stocks traded unevenly as traders repriced the AI hardware stack. The Dow added roughly 0.6%, the S&P 500 was flat (+0.08%), and the Nasdaq slipped about 0.4% after headlines suggested Google and Meta are exploring a shift of significant AI workloads toward Google’s in-house Tensor Processing Units (TPUs), pressuring leading GPU suppliers.
AI Chipmakers Under Pressure
Nvidia (NVDA) fell about 5.3% to around $172.90 after dropping to $169.55 in the first hour, its lowest since September 17. The drawdown follows reports that hyperscalers could diversify away from Nvidia’s and AMD’s GPUs to Google’s custom silicon—potentially altering capex allocation and market share expectations in AI infrastructure.
Technically, NVDA is leaning on critical supports. The next key downside level is the 38.2% retracement of the April advance near $164.22. On the topside, initial resistance sits at a band of prior swing lows around $176.76–$177.25. The stock also failed to reclaim its 50-hour moving average near $182.55, underscoring a deteriorating near-term bias.
Advanced Micro Devices (AMD) tumbled about 7.5% to $198.90. Intraday, shares hit $194.28, effectively tagging the 38.2% pullback from the April low at $194.27—also in the vicinity of last Friday’s trough. A sustained break below that zone would open a deeper corrective phase, while stabilization above it could invite short covering.
Platform Giants Diverge
Alphabet (GOOGL) briefly set a record at $328.83 before trimming gains to trade up about 1.1% near $322. The stock’s ascent reflects perceived strategic advantage from proprietary TPUs and better cost visibility on AI compute. On the hourly chart, a gap at $306.42–$309.60 may serve as a reference support if momentum cools.
Meta Platforms (META) climbed roughly 2.5% to $628.48, with investors wagering that increased competition among chip vendors could compress AI compute costs and improve Meta’s return on invested capital. From a technical standpoint, shares reclaimed the 100-hour moving average near $610.54. The 50% retracement of the April rally sits at $637.67, while the 200-hour moving average near $660.58 is the next topside hurdle. Bulls will likely defend $610–$611 as near-term risk.
Flows, Positioning, and Index Dynamics
The day’s tape shows rotation rather than broad de-risking. Value/cyclicals supported the Dow, while high-beta tech lagged on hardware repricing. Liquidity flows favored platform names and AI beneficiaries with potential cost leverage, at the expense of semiconductor leaders facing headline risk and recalibrated earnings trajectories. FX and rates were not the driving narrative; equity-specific catalysts dominated intraday volatility.
Market Highlights
– Dow +0.6%, S&P 500 +0.08%, Nasdaq -0.4% as AI hardware headlines steer sector rotation – Nvidia -5.3% near $172.90; support around $164.22 (38.2% of April advance), resistance $176.76–$177.25; 50-hour MA near $182.55 – AMD -7.5% near $198.90; intraday test of $194.27 (38.2% retracement) aligns with last Friday’s low – Alphabet hits all-time high $328.83 before easing to ~$322; hourly gap support eyed at $306.42–$309.60 – Meta +2.5% to ~$628.48; reclaimed 100-hour MA (~$610.54); targets at $637.67 (50% retracement) and $660.58 (200-hour MA)
What’s driving the selloff in Nvidia and AMD?
Reports that Google and Meta are discussing a pivot of AI workloads toward Google’s TPUs raised the risk that hyperscalers diversify away from GPUs, potentially impacting unit demand, pricing power, and capital expenditure plans for Nvidia and AMD.
Why did Alphabet and Meta trade higher?
Investors read the headlines as validation for Google’s custom-silicon strategy and as a potential tailwind for platforms like Meta if AI compute costs decline over time, improving operating leverage and ROI on AI initiatives.
Which technical levels matter most right now?
For Nvidia, $164.22 is key downside support with resistance at $176.76–$177.25 and the 50-hour MA near $182.55. For AMD, $194.27 is a pivotal support zone. Alphabet’s hourly gap at $306.42–$309.60 may attract dip buyers. Meta’s near-term risk pivots around the 100-hour MA near $610.54, with resistance at $637.67 and $660.58.
Does this imply broader market stress?
Not necessarily. The tape reflects rotation within the AI complex rather than systemic de-risking. The Dow’s outperformance versus the Nasdaq points to factor shifts and sector dispersion, a narrative BPayNews will continue to monitor as earnings and guidance refine AI capex trajectories.
