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Nvidia Dips as AI Chip Race Heats Up
26 Nov
Summary
- Stocks rallied Tuesday on Wall Street.
- Nvidia declined after Meta reported AI chip talks.
- Google's AI chips are cheaper and less power-hungry.
Wall Street saw a notable rally on Tuesday, with investors actively purchasing stocks in the lead-up to the Thanksgiving holiday. This market upswing occurred despite a significant drop in Nvidia's stock, which fell by 2.6%.
The decline in Nvidia's shares was attributed to a report detailing potential negotiations between Meta Platforms and Alphabet's Google. The report suggests Meta is considering purchasing artificial-intelligence chips directly from Google.
While Nvidia's graphics processing units are known for their flexibility, Google's tensor processing units present a compelling alternative due to their lower development costs and reduced power consumption, potentially shifting the competitive landscape in the AI chip market.
