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Google's AI Chip Leap Sparks Nvidia Stock Plunge
25 Nov, 2025
Summary
- Nvidia shares dropped 5.3%, erasing nearly $250bn in market value.
- Google's new AI model, Gemini 3, trained on its own chips.
- Investors fear Google's AI chips could challenge Nvidia's market dominance.
Nvidia's market value plummeted by nearly $250bn as its shares tumbled 5.3% on Tuesday. This significant retreat was triggered by growing investor sentiment that Google is rapidly gaining ground in the artificial intelligence sector.
The sell-off affected related companies, including Super Micro Computer and Oracle. The primary driver appears to be the recent release of Google's Gemini 3, a powerful AI model trained on its own Tensor Processing Units (TPUs), which analysts suggest could 'reset the AI hierarchy'.
Reports indicate Google is actively pitching its TPUs to potential clients, a move that could directly challenge Nvidia's current dominance in the AI chip market. This development comes as Nvidia has lost substantial market value in recent weeks.
