# Chip stock rout sends investors rushing back to bruised Alphabet stock > Source: > Published: 2026-07-28 14:05:03+00:00 With [chip stocks extending their sell-off](https://finance.yahoo.com/markets/article/micron-sk-hynix-stocks-fall-as-chip-sell-off-deepens-125622548.html), investors have rotated back into safety in the Big Tech patch. Believe it or not, that now includes Alphabet ([GOOG](https://finance.yahoo.com/quote/GOOG/), [GOOGL](https://finance.yahoo.com/quote/GOOGL/)), which is only a few days removed from its stock being hammered by fears of AI overspending. Talk about a short memory. **Quick insight:** Alphabet stock started Tuesday's session above the key 200-day moving average after closing above it on Monday, according to [Yahoo Finance AlphaSpace](https://finance.yahoo.com/about/promos/gold/alphaspace?100003557) data (chart below). The stock broke below the 200-day moving average for the first time in more than three years on July 23 as investors digested the company's second quarter numbers. The 200-day moving average is one of the most widely followed technical indicators as it helps investors distinguish a stock's long-term trend from short-term market noise. A stock trading above its 200-day moving average is generally viewed as being in a long-term uptrend. A break below that level is often interpreted as a bearish signal that selling pressure is increasing and institutional investors may be turning more cautious. Alphabet's second quarter capital expenditures came in at $44.9 billion, slightly above Wall Street forecasts of $44.7 billion. Full-year capital expenditures guidance was raised to $195 billion to $205 billion from $180 billion to $190 billion, with a "significant" increase seen for 2027, executives said on the earnings call. Concerns about AI spending overshadowed a strong quarter for the company. The [standout was Google Cloud](https://finance.yahoo.com/markets/article/google-cloud-is-becoming-alphabets-new-profit-engine-chart-of-the-day-090000053.html), where revenue surged an eye-popping 82% to $24.8 billion, while the company's cloud backlog ballooned to $514 billion, underscoring the enormous demand for AI infrastructure. **The backdrop:** The rotation back into Alphabet is notable in light of the past 48 hours for the wider tech landscape. Semiconductor stocks are under intense pressure as investors have begun questioning whether the artificial intelligence spending boom has become overheated and have grown more concerned about rising competition from China. The fears intensified on Tuesday after the KOSPI ([^KS11](https://finance.yahoo.com/quote/^KS11/)) plunged nearly 11%, its worst session in months, as memory chip giants Samsung Electronics ([005930.KS](https://finance.yahoo.com/quote/005930.KS/)) and SK Hynix ([SKHY](https://finance.yahoo.com/quote/SKHY/)) suffered double-digit declines that rippled through the global semiconductor sector. Adding to the anxiety were reports that China has made significant progress in memory chips through ChangXin Memory Technologies and in domestic lithography equipment, raising concerns that Chinese companies could become stronger competitors to established chipmakers.