Nvidia Stock Plunges Today After Google-Meta AI Chip Deal Leak—What It Means for Investors

Nvidia stock (NASDAQ: NVDA) slipped 2.6 % in pre-holiday trading after fresh signs emerged that Google’s in-house AI accelerators are winning support from hyperscalers that have long relied on Nvidia’s GPUs. The pullback extends a two-week slide that has erased roughly $380 billion in market value and dragged the AI champion 14 % below the record $5 trillion capitalization hit earlier this month. What’s pressuring the shares? 1. Google TPU momentum: Alphabet confirmed that its next-gen Tensor Processing Units will power the new Gemini 3 model, a move analysts call the clearest threat yet to Nvidia’s data-center dominance. 2. Meta negotiations: The Wall Street Journal reports Meta is in advanced talks to deploy Google’s chips across its own AI clusters, potentially diversifying away from Nvidia’s H200 GPUs. 3. Valuation jitters: “Big Short” investor Michael Burry reignited debate over Nvidia’s accounting, arguing that longer depreciation timelines for GPUs may be artificially boosting earnings, a claim Nvidia rejected in a memo to analysts. Nvidia strikes back In a series of posts on X, the company stressed that its Blackwell-class GPUs deliver a full generation of performance advantage versus ASIC rivals and remain compatible with the CUDA software stack that underpins more than 4 million AI developers worldwide. Management also reminded investors that fiscal Q3 revenue leapt 79 % year-over-year to a record $22.1 billion while free cash flow hit $12 billion, metrics unmatched in the semiconductor sector. Why the debate matters The stakes are massive: IDC forecasts global spending on AI servers to top $300 billion by 2027, with every 1 % share shift worth roughly $3 billion in annual sales. While Google’s TPU v6 could shave costs for cloud partners that already run Alphabet services, most enterprises remain locked into Nvidia’s CUDA ecosystem, making a wholesale switch costly and time-consuming. Key levels to watch • $408: 50-day moving average that bulls need to defend to avoid a deeper correction. • $377: Gap-fill level from the October earnings breakout—seen as the next strong support if selling accelerates. • $475: Resistance reclaimed only if investors regain confidence that competitive fears are overdone. Looking ahead Traders will parse Meta’s annual AI infrastructure update next week for concrete capex allocations. Meanwhile, Nvidia begins shipping its flagship H200 modules in December, and the company will host its GPU Technology Conference in March, events that could reset the narrative if performance benchmarks confirm another leap in speed-per-watt. Bottom line Despite today’s volatility, Nvidia still commands over 70 % of the global AI accelerator market. But with deep-pocketed rivals turning up the heat, investors should brace for heightened swings in NVDA news flow—and use them to accumulate shares only at levels that price in real competition rather than perfection.