Alphabet and Tesla reach fresh records, joining Amazon and Meta and pushing Nasdaq past 20,000
Tech stocks on display at the Nasdaq.
Peter Kramer | CNBC
Alphabet and Tesla climbed to fresh records on Wednesday, closing at all-time highs alongside Amazon and Meta as the tech megacaps lifted the Nasdaq past 20,000 for the first time.
Tech’s seven trillion-dollar companies added roughly $416 billion in market cap for the day.
For Alphabet, the two-day 11% rally was driven by the company’s launch of its latest quantum computing chip, which it revealed on Monday and described as a “breakthrough” and “an important step in our journey to build a useful quantum computer with practical applications” in drug discovery, battery design and other areas.
Alphabet closed at $195.40 on Wednesday, topping its prior high of $191.18, which it reached on July 10.
Tesla had been below its previous record for much longer. Shares of the electric vehicle maker jumped almost 6% on Wednesday to $424.77, climbing above their prior closing high of $409.97 on Nov. 4, 2021. The stock has soared 69% since Donald Trump’s election victory last month, on Wall Street’s optimism that Tesla CEO Elon Musk’s cozy relationship with the incoming president will pay dividends.
Amazon, Apple and Meta have all been regularly reaching new highs, though Apple slipped 0.5% on Wednesday. Microsoft, meanwhile, is about 4% below its high reached in July, and chipmaker Nvidia is 6% off its record from last month.
The outsized weighting of tech’s megacaps has pushed the Nasdaq to a 33% gain for the year. The index rose 1.8% on Wednesday to close at an all-time high of 20,034.89.
The market has rallied since Trump’s victory on Nov. 4, partly on expectations that the new administration will dial down regulatory pressure on the tech industry and allow for more dealmaking.
On Tuesday, Trump named Andrew Ferguson as the next chair of the Federal Trade Commission, replacing Lina Khan, who is best known for blocking the top tech companies’ acquisition efforts. Ferguson, currently one of the FTC’s five commissioners, “will be the most America First, and pro-innovation FTC Chair in our Country’s History,” Trump wrote in a Truth Social post.
Tom Lee, managing partner at Fundstrat Global Advisors, told CNBC’s “Closing Bell” that investors see more gains in tech with the expectation that a Federal Reserve rate cut is coming this month. The consumer price index showed a 12-month inflation rate of 2.7% in November, the Bureau of Labor Statistics reported on Wednesday, further solidifying the market outlook for a cut.
“We know that when interest rates fall, the megacaps actually are very sensitive to that, and I think today was a day where the odds of a December cut increased,” Lee said. “That’s actually bullish for tech.”
WATCH: What Fundstrat’s Tom Lee expects from the markets in 2025
Jensen Huang, chief executive officer of Nvidia Corp., during the US-Saudi Investment Forum at the Kennedy Center in Washington, DC, US, on Wednesday, Nov. 19, 2025.
Stefani Reynolds | Bloomberg | Getty Images
In the weeks leading up to Nvidia’s third-quarter earnings report, investors debated whether the markets were in an AI bubble, fretting over the massive sums being committed to building data centers and whether they could provide a long-term return on investment.
During Wednesday’s earnings call with analysts, Nvidia CEO Jensen Huang began his comments by rejecting that premise.
“There’s been a lot of talk about an AI bubble,” Huang said. “From our vantage point we see something very different.”
In many respects, Huang’s remarks are to be expected. He’s leading the company at the heart of the artificial intelligence boom, and has built its market cap to $4.5 trillion because of soaring demand for Nvidia’s graphics processing units.
Huang’s smackdown of bubble talk matters because Nvidia counts every major cloud provider — Amazon, Microsoft, Google, and Oracle — as a customer. Most of the major AI model developers, including OpenAI, Anthropic, xAI and Meta, are also big buyers of Nvidia GPUs.
Huang has deep visibility into the market, and on the call he offered a three-pronged argument for why we’re not in a bubble.
First, he said that areas like data processing, ad recommendations, search systems, and engineering, are turning to GPUs because they need the AI. That means older computing infrastructure based around the central processor will transition to new systems running on Nvidia’s chips.
Second, Huang said, AI isn’t just being integrated into current applications, but it will enable entirely new ones.
Finally, according to Huang, “agentic AI,” or applications that can run without significant input from the user, will be able to reason and plan, and will require even more computing power.
In making the case of Nvidia, Huang said it’s the only company that can address the three use cases.
“As you consider infrastructure investments, consider these three fundamental dynamics,” Huang said. “Each will contribute to infrastructure growth in the coming years.”
Reversing the slide
In its earnings release, Nvidia reported revenue and profit that sailed past estimates and issued better-than-expected guidance. Last month, Huang provided a $500 billion forecast for sales of the company’s AI chips over calendar 2025 and 2026.
The company said on Wednesday that its order backlog didn’t even include a few recent deals, like an agreement with Anthropic that was announced this week or the expansion of a deal with Saudi Arabia.
“The number will grow,” CFO Colette Kress said on the call, saying the company was on track to hit the forecast.
Prior to Wednesday’s results, Nvidia shares were down about 8% this month. Other stocks tied to the AI have gotten hit even harder, with CoreWeave plunging 44% in November, Oracle dropping 14% and Palantir falling 17%.
Some of the worry on Wall Street has been tied to the debt that certain companies have used to finance their infrastructure buildouts.
“Our customers’ financing is up to them,” Huang said.
Specific to Nvidia, investors have raised concerns in recent weeks about how much of the company’s sales were going to a small number of hyperscalers.
Last month, Microsoft, Meta, Amazon and Alphabet all lifted their forecasts for capital expenditures due to their AI buildouts, and now collectively expect to spend more than $380 billion this year.
Huang said that even without a new business model, Nvidia’s chips boost hyperscaler revenue, because they power recommendation systems for short videos, books, and ads.
People will soon start appreciating what’s happening underneath the surface of the AI boom, Huang said, versus “the simplistic view of what’s happening to capex and investment.”
WATCH: Nvidia posts Q3 beat
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