Alphabet and Nvidia Power Stock Market Rally
tech stocks are performing much better this week than they did the last couple weeks thanks in part to Nvidia and Alphabet's strong showing.
Quick overview
- Stocks rallied on Monday, with the Nasdaq Composite up 2.7%, but dipped slightly on Tuesday morning.
- Alphabet's stock surged 6.3% as it approaches a $4 trillion valuation, driven by expectations of increased online traffic during the holiday season.
- Nvidia is making strides in the AI market and is negotiating to sell high-end processing chips to China, despite facing regulatory challenges.
- Both companies are experiencing significant stock growth, with Alphabet up 71% this year and Nvidia up 21%, reflecting a positive shift in consumer sentiment towards AI.
Stocks rallied on Monday and then dipped lower Tuesday morning, with technology stocks leading the way and the Nasdaq Composite up 2.7% on Monday.
The Nasdaq dipped just 0.2% on Tuesday morning in early trading from its recent high, thanks to great performances by Alphabet (GOOGL), up 6.3%, and Nvidia (NVDA), up 2%. In premarket trading for Tuesday, stocks dipped a little lower than their Monday highs but still held onto most of their gains.
Tech stocks are on the rise overall after a rough couple of weeks. Fears about the market, specifically the artificial intelligence niche, have permeated the stock market discussion and guided investment decisions recently. After several AI-related companies posted better than expected earnings reports, however, the tide appears to be shifting slightly toward improved consumer sentiment about AI business.
Alphabet Close to $4 Trillion Valuation
Google’s parent company, Alphabet, could soon be worth $4 trillion. Their stock climbed sharply on Tuesday as the company prepared to get a big boost from Thanksgiving, Black Friday, and Cyber Monday online traffic. The company is focused heavily on AI interests and has seen tremendous stock growth in 2025. Now valued at $318, GOOGL stock is up 71% from their January price.
Nvidia Pushes Ahead
Nvidia is likewise making waves in the AI market space, and they are working to edge their way back into China. The company has been working with the Trump administration and U.S. negotiators to strike a deal with China so that they can sell their H200 high end processing chips as well as other key AI companies to the Chinese market. They have received pushback from both the Trump administration and the Chinese government about selling to the key Asian market.
China is concerned that Nvidia will create a monopoly on AI parts and drive down sales of local components. The United States government is worried that if Nvidia sells its most powerful AI chips to China, then China will outpace American AI development and become a technological superior.
Nvidia’s stock has grown 21% in 2025, which is not quite as ell as it has performed in recent years but still shows incredible growth for a market that some say is on the verge of collapsing. Nvidia’s leadership is confident that the AI market is only going to grow and that it will pivot to include new capabilities and functionality in the coming years. Like Alphabet, they are positioned to take advantage of that.
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