TLDR
- Nvidia stock fell 1.3% Thursday despite Alphabet raising its capex guidance
- Micron and SK Hynix jumped 3% and 5.8% respectively as investors rotated into specialist chip names
- Alphabet stock dropped 6.3% on capex concerns despite strong results
- Amazon fell 3.3% and Meta dropped 2.4% in early trading
- UNIVEST FINANCIAL boosted its NVDA stake by 8.4% in Q1, with Wall Street consensus at a $304.26 price target
Nvidia opened at $212.06 on Thursday, sliding 1.3% in early trading — a move that surprised some investors given Alphabet had just raised its capital expenditure guidance, much of it aimed at AI infrastructure.
The intuitive read was that more AI spending should be good for Nvidia. More chips needed, more demand, higher revenue. Simple enough. But markets had other ideas.
Instead of flowing into Nvidia, money rotated toward specialist chip and memory names. Micron jumped 3% and SK Hynix surged 5.8%. The logic: Alphabet’s spending plans signal sustained demand for the kinds of chips and memory these companies make.
Nvidia, despite being a chip company, has grown so large — with a market cap of $5.13 trillion — that it now trades more like a Big Tech stock than a pure-play chip name.
That distinction matters right now. A recent trend has had investors selling chip stocks to buy into the largest tech names. Alphabet’s earnings may have flipped that rotation in the other direction.
Big Tech Broadly Under Pressure
Alphabet itself fell nearly 6.3% Thursday, despite beating expectations. The concern wasn’t the revenue — it was the scale of capital spending, which rattled investors worried about returns on that investment.
Amazon dropped 3.3% and Meta fell 2.4% in early trading. Nvidia’s decline fit the same pattern: sell the big names, rotate into the specialists.
Nvidia’s 52-week range sits between $164.07 and $236.54. The stock’s 50-day moving average is $208.76, and its 200-day sits at $195.59. The PE ratio stands at 32.47 with a price-to-earnings-growth ratio of 0.40.
The company reported Q1 EPS of $1.87, beating the $1.76 consensus estimate. Revenue came in at $81.61 billion, above the $78.42 billion forecast. That was an 85.2% jump year over year.
Analyst Targets Remain High
Wall Street hasn’t turned on Nvidia. The consensus rating remains “Buy” with a price target of $304.26, well above Thursday’s opening price.
Tigress Financial set a $425.00 price target in May, up from $360.00, with a strong buy rating. Wells Fargo has a $315.00 target, and Wolfe Research sits at $275.00.
Out of 53 analysts tracked, 48 have a Buy rating, three have Strong Buy, and just two hold.
UNIVEST FINANCIAL Corp increased its NVDA position by 8.4% in Q1, adding 24,489 units to bring its total to 316,215, valued at around $55.1 million. Nvidia is now its 7th-largest holding.
Institutional investors and hedge funds hold 65.27% of the stock.
Nvidia also raised its quarterly dividend to $0.25 — up from $0.01 previously — and its board approved an $80 billion share repurchase program in May.
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