Did Nvidia Just Deliver a Breakout Fake-Out? Why Dip‑Buyers Should Welcome a Dip

Quick Read

• Nvidia (NVDA) fell 8% below $200 per share after briefly rejoining the $5 trillion club, facing potential weakness to the $170-180 channel as Alphabet (GOOG) closed its market cap gap to $4.6 trillion following a 10% surge on a strong quarterly result. Meta Platforms (META) and Microsoft (MSFT) both posted wonderful results but faced negative market reactions to their capital expenditure plans.

• Alphabet’s exceptional quarter has set a new performance bar for AI leaders, potentially positioning Google to overtake Nvidia as the world’s largest company by mid-2026, though recent weakness in Nvidia appears driven more by technical factors and AI sector volatility than fundamental deterioration.

• The analyst who called NVIDIA in 2010 just named his top 10 stocks and Google wasn’t one of them. Get them here FREE.

It can be tough to chase breakout moments, especially if a consolidating stock has already dealt out a fake-out in the past year. In any case, Nvidia (NASDAQ:NVDA) shares were quite quick to tumble below $200 per share after rejoining the $5 trillion club, once again, for just a few days. For Nvidia shareholders who topped up after the GPU giant made new highs, it can be pretty frustrating, especially since the rest of the semiconductor scene has been off to the races this year.

With a 8% dip in the books and the likelihood of a dip right back into the $170-180 channel, many may be wondering if it’s time to move on from the world’s largest company, especially as Alphabet (NASDAQ:GOOG) comes breathing down its neck following its needle-moving of a blowout quarter that sent shares up 10% in a single day, putting the market cap just above $4.6 trillion.

As the breakout faulters, Nvidia might surrender the title of world’s largest company

In a prior piece dated all the way back in November, I predicted that Alphabet would become the largest company by the end of 2026. And, at this pace, it’s looking like the big moment might come before the midpoint of the year, thanks in part to a phenomenal quarter that made Google’s hyperscaler rivals’ big reveals look relatively lacking.

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Google wasn’t one of them. Get them here FREE.

In short, Alphabet has set a new bar for itself and probably the rest of the Magnificent Seven. Whether TPUs become more talked about than GPUs in the second half remains the big question. Either way, I don’t think investors should give up on Nvidia, just because Google is quick on its tail.

Though there might be no stopping Google’s incredible ascent, I do find that Nvidia’s recent action (a swift 7% dip) has more to do with technicals and the vicious action sweeping through the AI trade than anything to do with Nvidia and its fundamentals. In other words, the technical pop and drop will probably put Nvidia right back to the channel it’s spent much of the last nine months.

Of course, any bit of news from one company in the AI waters is sure to make waves that will rattle even the world’s largest company. Whether we’re talking about the OpenAI report, which the firm has since pushed back on, or the market’s incredibly negative reaction to the CapEx of Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) despite posting wonderful results, Nvidia investors had better be prepared for intense volatility.

The plunge to support isn’t anything to be discouraged about

The good news is that more sideways action could be a correction in itself, opening up a window of opportunity for investors to pick up Nvidia as the company looks to hit revenue in excess of $1 trillion by 2027.

Of course, these are big numbers, and they didn’t quite generate the reaction from the market that I would have thought. Do investors doubt the milestone? Or are they looking well beyond 2027 for clues as to what follows the boom? Could the massive growth up ahead already be priced in?

Like with downward corrections, Nvidia stock’s “time correction” might have longer to run as its second failed breakout (the other being back in November 2025) looks to really test the patience of its investors.

Even if Google’s move past Nvidia in the market cap leaderboard is unavoidable, I still find Nvidia to be a fantastic relative value play. Yes, competitors, like Google and its TPUs, are coming in fast. But, as I explained in prior pieces, Nvidia has been expanding its reach across the AI stack. And the timing couldn’t be better with the agentic AI revolution just getting underway.

With Nvidia’s own May earnings up ahead, Jensen Huang’s GPU titan will have its moment to move its own stock and the rest of the market. The only question is how much of a blowout will be needed to actually convince investors to pile back into the name.

The analyst who called NVIDIA in 2010 just named his top 10 AI stocks

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