Nvidia Drops 5%: Meta and Google shake up AI chip dominance?

Jakarta, Pintu News – On Tuesday morning, Nvidia (NVDA) shares plummeted by 5%, contrary to the positive trend in other tech stocks such as Apple, Alphabet, and AMD. The decline has sparked investor concerns, especially amidst the market’s euphoria over the development of artificial intelligence technology.

Meta and Google challenge Nvidia’s position

According to a report by The Information, Meta Platforms is exploring a massive investment in Google’s AI chips, opening up a potential direct threat to Nvidia’s dominance in the AI market. Plus, Google plans to offer their Tensor Processing Units (TPUs) to cloud customers, a move that could cut Nvidia’s potential revenue by 10% per year.

On the other hand, AMD-one of Nvidia’s main competitors-has posted a 78% stock gain this year, far ahead of Nvidia’s gain of only about 35%. While AMD’s current AI products have yet to displace Nvidia’s Blackwell hardware dominance, the upcoming MI400 and MI450 chip series have the potential to be serious challengers.

Also Read: 7 Ways to Buy and Sell Tokenized Gold at the Door, Starting from Rp11,000 and Can be 24/7

Nvidia’s Response: Relax, It’s a Strategy

In response to market concerns, Nvidia told Wall Street analysts that their strategic investments remain on track. In an official memo, Nvidia emphasized that the companies in its investment portfolio are showing significant revenue growth and high demand for AI solutions.

Simon Leopold, an analyst from Raymond James, expressed confidence that Nvidia will continue to lead the way amid the AI boom. He believes that semiconductor logic investment will be the driver of long-term growth globally.

Wall Street Still Optimistic

Despite NVDA’s declining stock price, analysts’ long-term outlook remains positive. Wall Street still sees Nvidia as an AI market leader with great growth opportunities. Leopold also notes that despite increased scrutiny on the ROI of AI investments, Nvidia’s move is still considered strategic and has the potential to bring significant returns in the long run.

Conclusion

Nvidia’s stock decline reflects pressure from competition and the changing direction of major investments in the AI sector. However, with a strong market position, strategic investments, and analyst support, Nvidia has the potential to bounce back. The company remains a major player in the global AI technology race.

Now, you can expand your portfolio to the world’s top stocks right from the Pintu app through a new feature: Pintu xStocks. This feature gives you access to global stock markets-especially those of top US companies like NVIDIA (NVDAX)-in an easy, affordable, and practical way.

Also Read: A Complete Guide to Saving Digital Gold in 2025 – Simple, Safe, Can Start from Rp11,000!

Follow us on Google News to get the latest information about crypto and blockchain technology. Check Bitcoin price today, Solana price today, Pepe coin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app via Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ – Nvidia Shares Fall

Q1: What was the main cause of Nvidia’s stock decline?
A1: Market concerns over reports that Meta will shift investment to Google’s AI chips, as well as Google’s plan to sell TPUs to other customers, which could cut into Nvidia’s potential revenue.

Q2: How does AMD and Nvidia’s stock performance compare?
A2: AMD is up more than 78% this year, while Nvidia is only up about 35%, reflecting a shift in investor confidence.

Q3: How has Nvidia responded to criticism of their AI strategy?
A3: Nvidia emphasizes that its investment portfolio shows strong revenue growth and high profitability potential in the AI ecosystem.

Q4: Does Wall Street still believe in Nvidia?
A4: Yes, analysts like Simon Leopold remain bullish and believe Nvidia will continue to lead the AI market globally.

Q5: What impact will Google and Meta’s move have on Nvidia going forward?
A5: If major investments do happen, Nvidia’s dominance in the AI market could be threatened, although its strategy and strong technology base are still key advantages.

Reference:

• Watcher Guru.“NVIDIA Dips 5%: Why NVDA Isn’t Part of Latest Tech Stock Rally.” Accessed November 26, 2025.