Key Highlights

● Nvidia slipped even as the chip sector broadly rallied.

● The rally was led by memory names after SK hynix's results.

● Nvidia dipped again after hours on Alphabet's earnings miss.

● Microsoft rose after the bell on accelerating Azure growth.

Nvidia shares slipped on Wednesday as memory makers and chip-equipment stocks powered a fourth straight gain for the semiconductor index, then dipped again after the bell in sympathy with Alphabet.

Nvidia (NASDAQ:NVDA) lagged on Wednesday, October 28, slipping on the S&P 500 even as the rest of the semiconductor sector extended a powerful rally. The Philadelphia Semiconductor Index climbed for a fourth straight session to close at 11,684.00, but the dominant supplier of AI processors failed to join in.

Memory Takes the Spotlight

The day's semiconductor leadership came from memory. South Korea's SK hynix (NASDAQ:SKHY) reported a blockbuster quarter, with profit jumping more than sevenfold, and said it expects the memory shortage to last into 2030. Its US-listed shares soared, and the news sent South Korea's KOSPI sharply higher.

That lifted US memory names. Micron (NASDAQ:MU) and Sandisk (NASDAQ:SNDK) both climbed, while Arm (NASDAQ:ARM), AMD (NASDAQ:AMD) and Marvell (NASDAQ:MRVL) also rose. Chip-equipment makers Lam Research (NASDAQ:LRCX) and Applied Materials (NASDAQ:AMAT) gained as well. The rotation suggested investors were looking for AI beneficiaries beyond Nvidia, particularly in memory, where supply shortages have been driving prices higher.

After the Bell: Alphabet Weighs

Nvidia slipped again in extended trading after Alphabet (NASDAQ:GOOGL) reported third-quarter earnings that missed expectations and free cash flow that turned negative. Alphabet shares slid sharply after hours, and Micron also fell in sympathy.

Alphabet also raised its 2026 capital spending forecast to a range of $195 billion to $205 billion. Big-tech capital spending is a crucial driver of demand for Nvidia's AI processors, but investors appeared more focused on Alphabet's earnings miss than on the higher spending plan. Microsoft (NASDAQ:MSFT), by contrast, rose after the bell after beating revenue forecasts and reporting accelerating growth in its Azure cloud business.

Fed Holds, AI Capex Debated

The Federal Reserve left its benchmark rate range unchanged in a 10-2 vote, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a hike. BCA Research's Peter Berezin offered a longer-range warning that an AI capex bust could arrive eventually, though probably not until 2028.

The S&P 500 rose 21.38 points to 7,743.98, the Nasdaq Composite gained 72.04 points to 26,549.85 and the Nasdaq-100 added 161.72 points to 29,813.16. The Dow Jones Industrial Average, of which Nvidia is a member, rose 97.53 points to 52,475.10.

What to Watch

The biggest near-term question for Nvidia is whether hyperscalers keep spending at a rapid clip. Amazon (NASDAQ:AMZN) reports after Thursday's close, and Meta (NASDAQ:META) is due later this week, offering fresh signals on AI infrastructure budgets.

Thursday also brings the advance estimate of third-quarter GDP and September PCE inflation at 8:30 a.m. ET. Overnight, Nasdaq-100 futures pointed lower as Alphabet's results weighed, setting up a potentially choppy open for megacap technology stocks.