Alphabet stock faces bearish momentum amid AI chip deal

Alphabet Inc. stock is currently experiencing a period of consolidation and bearish momentum. Technical indicators show the price trading near $340, sitting below both the 20-day and 50-day exponential moving averages (EMAs), though it remains above the 200-day EMA. Analysts note a bearish flag pattern on certain charts, suggesting that a break below the $338 support level could lead to further declines toward $325 or lower.

Despite the short-term technical pressure, the company is making significant fundamental moves in artificial intelligence infrastructure. Alphabet has entered a multi-billion dollar custom-silicon agreement with Marvell Technology. Under this deal, Google receives warrants for up to 58.97 million Marvell shares, a move that underscores Alphabet’s deep investment in developing its own AI chips.