{"id":40991,"date":"2026-02-05T13:58:07","date_gmt":"2026-02-05T05:58:07","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=40991"},"modified":"2026-02-05T13:58:07","modified_gmt":"2026-02-05T05:58:07","slug":"nvidia-slips-despite-alphabet-capex-surge","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/nvidia-slips-despite-alphabet-capex-surge\/","title":{"rendered":"Nvidia Slips Despite Alphabet Capex Surge"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx-90-1024x559.png\" alt=\"\" class=\"wp-image-20965\"\/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nvidia shares fell <strong>2.27%<\/strong> to <strong>$175.47<\/strong>, despite post-market buying interest<\/li>\n\n\n\n<li>Alphabet plans to double capital spending to <strong>about $180 billion<\/strong>, reinforcing long-term AI infrastructure demand<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p>Nvidia shares eased on Wednesday, closing down <strong>2.27%<\/strong> at <strong>$175.47<\/strong>, as traders continued to digest recent weakness in high-growth technology stocks.<\/p>\n\n\n\n<p>The decline came even as Alphabet announced a sharp increase in capital spending, a move that underpins longer-term demand for advanced chips but did little to lift Nvidia decisively during regular trading hours.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Alphabet is taking on OpenAI with a gusto that underscores Wall Street&#39;s perception that the Google parent is the leader in AI, a turn of events from a year ago when investors thought it was badly lagging behind rivals and punished its stock <a href=\"https:\/\/t.co\/gEQqKcalmK\">https:\/\/t.co\/gEQqKcalmK<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/2019283608230309949?ref_src=twsrc%5Etfw\">February 5, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Alphabet said it would double capital expenditure this year to around <strong>$180 billion<\/strong>, largely to expand data-centre capacity and AI infrastructure.<\/p>\n\n\n\n<p>The announcement sparked a stronger reaction in some of Nvidia\u2019s peers, while <a href=\"https:\/\/t.co\/UTuNX0ah7x\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">Nvidia itself struggled to shake off broader selling pressure<\/a> that has weighed on the stock in recent sessions.<\/p>\n\n\n\n<p>A cautious forecast suggests that while the spending plans reinforce Nvidia\u2019s structural demand outlook, near-term price action may remain choppy as traders reassess valuation and positioning.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Alphabet Spending Highlights Nvidia\u2019s Strategic Role<\/h2>\n\n\n\n<p>Despite Google\u2019s growing use of its own in-house AI accelerators, Nvidia remains a critical supplier across Alphabet\u2019s ecosystem.<\/p>\n\n\n\n<p>Google Cloud continues to rely on Nvidia GPUs for AI training and inference services offered to enterprise clients, while Nvidia hardware still supports key elements of Google\u2019s internal data-centre operations.<\/p>\n\n\n\n<p>The scale of <a href=\"https:\/\/t.co\/wT6Nxu3Opz\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">Alphabet\u2019s planned investment<\/a> underscores the pace at which AI workloads are expanding.<\/p>\n\n\n\n<p>Even with greater deployment of custom TPUs, the overall growth in compute demand supports continued reliance on Nvidia\u2019s high-performance chips, particularly for advanced and flexible AI tasks.<\/p>\n\n\n\n<p>This backdrop explains why Nvidia saw buying interest after hours, even as broader market sentiment stayed cautious.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Mixed Sentiment Weighs on Short-Term Momentum<\/h2>\n\n\n\n<p>Market sentiment around Nvidia remained subdued, with traders balancing long-term optimism against near-term concerns.<\/p>\n\n\n\n<p>Stocktwits data showed neutral sentiment, reflecting hesitation following recent headlines related to Nvidia\u2019s China business and export uncertainty.<\/p>\n\n\n\n<p>The stock has already come off recent highs, and some traders appear reluctant to add exposure ahead of clearer signals on earnings momentum and regulatory developments.<\/p>\n\n\n\n<p>This contrasts with the more enthusiastic response seen in Broadcom, which benefits directly from Google\u2019s networking and custom chip requirements.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Broadcom, Nvidia shares rise on surging Google capital expenditures for AI <a href=\"https:\/\/t.co\/04v5MWtgcQ\">https:\/\/t.co\/04v5MWtgcQ<\/a><\/p>&mdash; CNBC (@CNBC) <a href=\"https:\/\/twitter.com\/CNBC\/status\/2019170269722542374?ref_src=twsrc%5Etfw\">February 4, 2026<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>A cautious near-term view points to continued consolidation unless fresh catalysts emerge to reset expectations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p><strong>NVIDIA (NVDA)<\/strong> is currently trading at <strong>$175.47<\/strong>, down <strong>2.27% (-4.07)<\/strong> in the session, as it struggles to recover from an extended downtrend. After peaking near <strong>$194.43<\/strong>, the stock has steadily lost ground, with sellers dominating across multiple sessions.<\/p>\n\n\n\n<p>The sharp decline accelerated after the break below $183, dragging prices down toward a session low of <strong>$171.87<\/strong>. This support area saw a modest bounce, but so far the upside remains limited, and the overall trend is still downward.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-5-1024x474.jpg\" alt=\"\" class=\"wp-image-40992\"\/><\/figure>\n\n\n\n<p>Short-term moving averages (MA5: 175.18, MA10: 174.68, MA20: 174.43) are now clustering around the current price, hinting at potential consolidation.<\/p>\n\n\n\n<p>Volumes remain muted compared to the heavy selling earlier in the chart, suggesting that while downside pressure has eased, conviction on a bullish reversal is still weak.<\/p>\n\n\n\n<p>The brief recovery to <strong>$175.57<\/strong> could act as a short-term resistance, with price needing to convincingly break above <strong>$178\u2013180<\/strong> to change the broader trajectory.<\/p>\n\n\n\n<p>For now, the stock is attempting to stabilise, but any further breakdown below <strong>$171.87<\/strong> could open the door to test the <strong>$170.00<\/strong> psychological level. Traders should watch for volume confirmation and MACD crossover signals to gauge whether this bounce has legs.<\/p>\n\n\n\n<p><strong>Create a live <a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets account<\/a> today to access our platform features, including market insights and educational content.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nvidia steadies after a sharp pullback as Alphabet\u2019s $180bn spending plan supports long-term demand but fails to spark a broad rebound.<\/p>\n","protected":false},"author":64,"featured_media":20965,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[74,7],"class_list":["post-40991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-nvidia","tag-stocks"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40991"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40991\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20965"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}