Why did Nvidia shares tumble recently?

Nvidia shares fell sharply due to investor concerns that Google's advancements in AI chips, particularly its Tensor Processing Units (TPUs), could pose a significant competitive threat.

What is Gemini 3 and how does it relate to Nvidia?

Gemini 3 is Google's latest large language model, trained on its in-house TPUs. This development suggests Google is less reliant on Nvidia's chips for its AI infrastructure.

Is Google challenging Nvidia's AI dominance?

Yes, the market perception is that Google's progress with its TPUs and Gemini 3 model is challenging Nvidia's leading position in the AI chip industry.

Home / Business and Economy / Google's AI Chip Leap Sparks Nvidia Stock Plunge

Google's AI Chip Leap Sparks Nvidia Stock Plunge

25 Nov

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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.

Google's AI Chip Leap Sparks Nvidia Stock Plunge

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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.