Thursday was a whirlwind for the stock market as tech giants Nvidia (NVDA) and Alphabet (GOOG) made headlines for vastly different reasons.
Nvidia’s earnings underscored its dominance in AI hardware but highlighted supply chain hurdles, while Alphabet faced intensifying antitrust scrutiny. Meanwhile, Snowflake (SNOW) emerged as a star, soaring after strong earnings fueled optimism in the software sector. Here’s a closer look at the forces driving the day’s market movements.
Nvidia’s Blackwell Supply Chain Woes Temper Record Gains
Nvidia’s third-quarter earnings report revealed robust growth but left investors grappling with tempered expectations for the months ahead. Revenue soared 94% year-over-year to $35.1 billion, with data center revenue doubling to $30.8 billion, underscoring Nvidia’s pivotal role in the AI revolution. However, the company’s fiscal fourth-quarter guidance pointed to slower growth, citing supply chain bottlenecks for its next-generation Blackwell AI chips.
The delays are not due to lack of demand—far from it. Nvidia’s CEO Jensen Huang highlighted that demand continues to outstrip supply, a trend expected to persist into 2026. Analysts viewed this as a timing issue rather than a structural concern. “The guidance may look conservative, but Nvidia’s leadership in AI is unshaken,” said Alvin Nguyen of Forrester Research.
While Blackwell chips are now in full production, ramping up to scale has proven costlier than anticipated. Gross margins are expected to dip slightly in the coming quarter but are projected to rebound once production efficiencies improve. Nvidia’s position in AI hardware remains unmatched, but its near-term challenges, coupled with high investor expectations, weighed on shares, which dipped 1% after reaching an intraday record high.
Nvidia’s third-quarter earnings report revealed robust growth but left investors grappling with tempered expectations for the months ahead. Revenue soared 94% year-over-year to $35.1 billion, with data center revenue doubling to $30.8 billion, underscoring Nvidia’s pivotal role in the AI revolution. However, the company’s fiscal fourth-quarter guidance pointed to slower growth, citing supply chain bottlenecks for its next-generation Blackwell AI chips.
The delays are not due to lack of demand—far from it. Nvidia’s CEO Jensen Huang highlighted that demand continues to outstrip supply, a trend expected to persist into 2026. Analysts viewed this as a timing issue rather than a structural concern. “The guidance may look conservative, but Nvidia’s leadership in AI is unshaken,” said Alvin Nguyen of Forrester Research.
While Blackwell chips are now in full production, ramping up to scale has proven costlier than anticipated. Gross margins are expected to dip slightly in the coming quarter but are projected to rebound once production efficiencies improve. Nvidia’s position in AI hardware remains unmatched, but its near-term challenges, coupled with high investor expectations, weighed on shares, which dipped 1% after reaching an intraday record high.
Alphabet Slides as DOJ Targets Chrome in Antitrust Push
Alphabet faced its most significant regulatory challenge yet as the Department of Justice escalated its antitrust case, urging the breakup of the tech giant’s empire. The DOJ’s latest move—calling for Alphabet to divest its Chrome browser—comes as part of a broader argument that Google’s dominance in search and advertising stifles competition.
While Chrome itself generates little direct revenue, its integration within Alphabet’s ecosystem drives user engagement, ad revenue, and data collection. Losing Chrome would not only dent Alphabet’s ecosystem but also mark a symbolic blow to its dominance in the tech landscape. Alphabet responded sharply, arguing that breaking up its services would harm consumers and weaken America’s global tech leadership.
The market reacted swiftly, with Alphabet shares plunging over 6%. The DOJ’s actions also raise questions about the broader regulatory environment for Big Tech, which faces increasing scrutiny over its market practices. With a federal court hearing scheduled for April 2025, the case is far from resolution. Investors are bracing for further volatility as the legal battle unfolds, and Alphabet’s ability to maintain its competitive edge will be tested like never before.
Alphabet faced its most significant regulatory challenge yet as the Department of Justice escalated its antitrust case, urging the breakup of the tech giant’s empire. The DOJ’s latest move—calling for Alphabet to divest its Chrome browser—comes as part of a broader argument that Google’s dominance in search and advertising stifles competition.
While Chrome itself generates little direct revenue, its integration within Alphabet’s ecosystem drives user engagement, ad revenue, and data collection. Losing Chrome would not only dent Alphabet’s ecosystem but also mark a symbolic blow to its dominance in the tech landscape. Alphabet responded sharply, arguing that breaking up its services would harm consumers and weaken America’s global tech leadership.
The market reacted swiftly, with Alphabet shares plunging over 6%. The DOJ’s actions also raise questions about the broader regulatory environment for Big Tech, which faces increasing scrutiny over its market practices. With a federal court hearing scheduled for April 2025, the case is far from resolution. Investors are bracing for further volatility as the legal battle unfolds, and Alphabet’s ability to maintain its competitive edge will be tested like never before.
Snowflake Surges as AI-Powered Software Wins Over Wall Street
While Nvidia and Alphabet faced headwinds, Snowflake delivered a standout performance, with shares soaring more than 30% after its third-quarter earnings crushed expectations. The company reported strong revenue growth and raised its full-year guidance, fueled by rising demand for its AI and machine learning tools.
Snowflake’s success reflects a broader trend in which software companies are becoming key players in the AI economy. Management reported that 3,200 customers are now actively using Snowflake’s AI/ML products weekly, up from 2,500 last quarter. This rapid adoption has cemented the company’s position as a leader in data-driven AI applications.
Analysts were quick to praise Snowflake’s results, with Mizuho’s Jordan Klein noting that the company’s bullish outlook could spark a broader rally in software stocks. "Snowflake’s strong execution highlights the growing importance of AI software solutions, complementing hardware like Nvidia’s chips," Klein said.
Snowflake’s stellar performance comes as software stocks are beginning to outshine semiconductor makers in the AI narrative. As companies across industries invest heavily in AI infrastructure, Snowflake’s ability to capture this demand has positioned it for long-term growth.
Conclusion
Thursday’s market action highlighted the growing complexity of the tech sector. Nvidia’s supply constraints are a temporary hurdle in its dominant AI trajectory, while Alphabet faces structural risks from regulatory pressure. Snowflake, meanwhile, exemplified the potential of software companies to thrive in the AI era. As Big Tech contends with heightened scrutiny and AI adoption expands, investors will need to navigate a dynamic landscape of risks and opportunities.
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