The post Why Nvidia stock is crashing today appeared on BitcoinEthereumNews.com. The shares of American semiconductor giant Nvidia (NASDAQ: NVDA) are falling in pre-market trading as investors digest news that Meta (NASDAQ: META) will be opting for Google chips. Ahead of market opening on November 25, Nvidia stock has plunged 3.7% to $175. At the close of markets on Monday, the stock was valued at $182, up over 2%. NVDA one-day stock price chart. Source: Google Finance Notably, Nvidia shares are tumbling amid reports that Meta Platforms is exploring the use of Google’s custom AI chips in its data centers.  According to sources, Meta could begin integrating the chips as early as next year, with broader deployment possible by 2027. The move is seen as a potential challenge to Nvidia’s dominance in the AI accelerator and GPU market, a critical pillar of the company’s valuation and growth narrative. Nvidia’s competitive advantage  Investors are concerned that the adoption of Google’s TPUs, specialized processors designed for AI tasks, could reduce Nvidia’s competitive advantage in the fast-growing AI data center segment. Historically, Nvidia’s GPUs have been the preferred hardware for training and running large-scale AI models, giving the company significant pricing power and long-term contracts with hyperscale clients. A shift toward Google’s chips could signal a loosening of that “lock-in,” potentially impacting Nvidia’s projected revenue growth and profit margins. The pre-market decline also reflects broader caution in the tech sector, where high-valuation AI and semiconductor stocks are under increased scrutiny.  Analysts note that any indication that large customers are diversifying their hardware sources can trigger quick market reactions, especially when investor expectations are priced for near-perfect execution in AI growth. Featured image via Shutterstock Source: https://finbold.com/why-nvidia-stock-is-crashing-today/The post Why Nvidia stock is crashing today appeared on BitcoinEthereumNews.com. The shares of American semiconductor giant Nvidia (NASDAQ: NVDA) are falling in pre-market trading as investors digest news that Meta (NASDAQ: META) will be opting for Google chips. Ahead of market opening on November 25, Nvidia stock has plunged 3.7% to $175. At the close of markets on Monday, the stock was valued at $182, up over 2%. NVDA one-day stock price chart. Source: Google Finance Notably, Nvidia shares are tumbling amid reports that Meta Platforms is exploring the use of Google’s custom AI chips in its data centers.  According to sources, Meta could begin integrating the chips as early as next year, with broader deployment possible by 2027. The move is seen as a potential challenge to Nvidia’s dominance in the AI accelerator and GPU market, a critical pillar of the company’s valuation and growth narrative. Nvidia’s competitive advantage  Investors are concerned that the adoption of Google’s TPUs, specialized processors designed for AI tasks, could reduce Nvidia’s competitive advantage in the fast-growing AI data center segment. Historically, Nvidia’s GPUs have been the preferred hardware for training and running large-scale AI models, giving the company significant pricing power and long-term contracts with hyperscale clients. A shift toward Google’s chips could signal a loosening of that “lock-in,” potentially impacting Nvidia’s projected revenue growth and profit margins. The pre-market decline also reflects broader caution in the tech sector, where high-valuation AI and semiconductor stocks are under increased scrutiny.  Analysts note that any indication that large customers are diversifying their hardware sources can trigger quick market reactions, especially when investor expectations are priced for near-perfect execution in AI growth. Featured image via Shutterstock Source: https://finbold.com/why-nvidia-stock-is-crashing-today/

Why Nvidia stock is crashing today

The shares of American semiconductor giant Nvidia (NASDAQ: NVDA) are falling in pre-market trading as investors digest news that Meta (NASDAQ: META) will be opting for Google chips.

Ahead of market opening on November 25, Nvidia stock has plunged 3.7% to $175. At the close of markets on Monday, the stock was valued at $182, up over 2%.

NVDA one-day stock price chart. Source: Google Finance

Notably, Nvidia shares are tumbling amid reports that Meta Platforms is exploring the use of Google’s custom AI chips in its data centers. 

According to sources, Meta could begin integrating the chips as early as next year, with broader deployment possible by 2027.

The move is seen as a potential challenge to Nvidia’s dominance in the AI accelerator and GPU market, a critical pillar of the company’s valuation and growth narrative.

Nvidia’s competitive advantage 

Investors are concerned that the adoption of Google’s TPUs, specialized processors designed for AI tasks, could reduce Nvidia’s competitive advantage in the fast-growing AI data center segment.

Historically, Nvidia’s GPUs have been the preferred hardware for training and running large-scale AI models, giving the company significant pricing power and long-term contracts with hyperscale clients.

A shift toward Google’s chips could signal a loosening of that “lock-in,” potentially impacting Nvidia’s projected revenue growth and profit margins.

The pre-market decline also reflects broader caution in the tech sector, where high-valuation AI and semiconductor stocks are under increased scrutiny. 

Analysts note that any indication that large customers are diversifying their hardware sources can trigger quick market reactions, especially when investor expectations are priced for near-perfect execution in AI growth.

Featured image via Shutterstock

Source: https://finbold.com/why-nvidia-stock-is-crashing-today/

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