Key Stats for Nvidia Stock
- Price Change for Nvidia stock: -2.60%
- $NVDA Share Price as of Nov. 25: $178
- 52-Week High: $285
- $NVDA Stock Price Target: $258
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What Happened?
Nvidia (NVDA) stock dropped sharply on Tuesday after reports emerged that Meta is considering a major shift in its chip strategy.
According to The Information, Meta is in talks with Google to spend billions of dollars on Google’s tensor processing units (TPUs) for its data centers starting in 2027. The news sent Nvidia stock tumbling as much as 7% during the session before closing down 2.6%.
The potential deal represents a significant vote of confidence for Google’s custom AI chips. Meta is one of the biggest spenders on AI infrastructure globally, with projected capital expenditures between $70 billion and $72 billion this year.
If Meta moves forward with using TPUs, it would validate Google’s technology and provide a credible alternative to Nvidia’s dominant GPUs.
Adding to the pressure, The Information also reported that Google is pitching major financial institutions on a program called “TPU@Premises” to compete with Nvidia in the massive market for on-premise data center chips.
This suggests Google is becoming more aggressive about challenging Nvidia’s near-monopoly position.
Nvidia stock has been at the center of heated debate about whether AI valuations have gotten too frothy.
The company’s market cap has swelled to roughly $5 trillion, making it the world’s most valuable company at times.
But some investors, including “Big Short” investor Michael Burry, have warned that Nvidia could be today’s version of Cisco during the dotcom bubble.
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What the Market Is Telling Us About Nvidia Stock
The market’s reaction shows growing concern that Nvidia’s dominance may not be as unshakeable as previously thought.
While Nvidia still controls more than 90% of the AI chip market, the enthusiasm around Google’s TPUs suggests customers are actively seeking alternatives to reduce their reliance on a single supplier.
Nvidia pushed back quickly on Tuesday, posting on X that the company remains “a generation ahead of the industry” and is “the only platform that runs every AI model and does it everywhere computing is done.”
The company emphasized that its chips offer greater performance, versatility, and flexibility compared to specialized ASIC chips like Google’s TPUs.
Still, the competitive landscape is shifting. Google’s recent release of Gemini 3, a state-of-the-art AI model trained entirely on TPUs rather than Nvidia GPUs, demonstrates that alternatives are becoming more viable.
Google’s cloud business is also seeing “accelerating demand for both our custom TPUs and Nvidia GPUs,” according to a company spokesperson.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
