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Alphabet stock slips back under 200-day moving average as chips fall
Alphabet had closed above its 200-day moving average on Monday, but shares broke below the level on July 23 after its second-quarter results.
Chip-stock losses have driven a rapid rotation within large-cap technology, with investors moving back toward safety in the Big Tech complex, including Alphabet, according to Yahoo Finance.
Alphabet stock had opened Tuesday above its widely tracked 200-day moving average, after ending Monday above the level. However, the shares first fell below the 200-day moving average on July 23 for the first time in more than three years, following digestion of the company’s second-quarter results.
The selloff coincides with investor focus on AI spending concerns that have overshadowed Alphabet’s fundamentals. Capital expenditures totaled $44.9 billion in the second quarter, slightly above Wall Street’s $44.7 billion forecast, and full-year capex guidance was raised to $195 billion to $205 billion from $180 billion to $190 billion, with executives pointing to a significant increase in 2027.
Yahoo Finance also cited pressure in the broader tech supply chain, where semiconductors have come under intense selling as traders question whether the AI spending cycle is becoming overheated and worry about competition from China. The fears intensified Tuesday after South Korea’s KOSPI fell nearly 11% in its worst session in months, with memory chip makers Samsung Electronics and SK Hynix posting double-digit declines that rippled through global semiconductors.
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