Investors Shift Back to Alphabet Amid Chip Stock Sell-Off
Amid a broader sell-off in chip stocks, investors are rotating back into tech giants like Alphabet (GOOG, GOOGL), despite recent concerns over AI spending. On Tuesday, Alphabet's stock crossed above its key 200-day moving average for the first time since July 23 after closing below it earlier that week. This technical indicator is often used to assess long-term trends and institutional sentiment. Alphabet reported strong second-quarter results with Google Cloud revenue surging by 82% to $24.8 billion, while capital expenditures rose slightly above expectations at $44.9 billion for the quarter. The company also raised its full-year capex guidance to between $195 billion and $205 billion. The shift in investor sentiment comes as semiconductor stocks face pressure due to fears of an overheated AI spending cycle and rising competition from China's chipmakers, such as ChangXin Memory Technologies.
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Topics: AI spending Alphabet capital expenditures chip stocks GOOG GOOGL