AI trade segments as software rebounds and Alphabet lags
This digest was compiled by AI from multiple sources — links to the originals are below.
Nvidia posted a banner quarter, but Marvell Technology plunged despite strong earnings, signaling a more segmented AI trade. Software stocks rebounded over the past week as investors rewarded accelerating revenue growth. Alphabet shed roughly $692 billion in market value as its stock fell 15% from its May high.
Key Facts
- Nvidia posted a banner quarter on Wednesday, reinforcing AI demand strength.
- Marvell Technology shares plunged after its own strong earnings report.
- Software stocks rebounded over the past week as investors focused on revenue acceleration.
- Alphabet has shed roughly $692 billion in market value, with the stock down 15% from its May all-time high.
- Hyperscaler capital expenditures are expected to exceed $1 trillion in 2027.
Diverging Chip Stocks
Nvidia's strong quarterly results sent a clear message that AI demand remains robust. Marvell Technology, another major chip designer, saw its shares plunge despite posting strong earnings. The contrasting reactions highlight a more segmented tech trade, according to strategists.
Software Rebound
Software stocks, which had been hammered for much of 2026, came roaring back over the past week. Steve Koenig, Macquarie US head of software and services research, said investors are now viewing potential AI disruption in software with more nuance. Koenig added that acceleration is being treated very positively, and stocks that can accelerate are getting rewarded.
Big Tech Divergence
Some strategists have dubbed the Magnificent Seven the 'Lag Seven' over the past few weeks. Amazon is up 15% over the past month, while Nvidia has gained 10%. Alphabet has moved the other way, shedding roughly $692 billion as the stock fell 15% from its May all-time high. Investors have grown cautious about Alphabet's infrastructure investments amid the departure of top AI talent and concerns about losing its edge. Chad Morganlander, senior portfolio manager at Washington Crossing Advisors, said there will be pockets of the market where unprofitable projects will eventually force debtholders to pay the price.
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AI trade segments as software rebounds and Alphabet lags
