Nvidia shares fell 7% after news of Meta's plans to buy chips from Google

Shares of one of the main beneficiaries of the AI boom, chipmaker Nvidia, plunged 7% to $169.5 in New York trading on Nov. 25. That marked their lowest since September 2025.

Investors sold off Nvidia's securities after online publication The Information reported that Nvidia could soon face serious competition from its own client, Google. The Information's sources told The Information that Google is in talks with Meta for billions of dollars, under which the latter will buy its AI chips for use in its data centers by 2027. In addition, The Information's interlocutors also pointed out that Google has started offering its AI chips to other cloud clients as well. The publication estimates that such a move could potentially deprive Nvidia of up to 10% of its annual revenue.

However, some analysts saw in the fall of Nvidia quotes an opportunity to buy. Thus, Bernstein expert Stacy Rasgon called the sell-off "excessive". "We still recommend to keep Nvidia in the portfolio. The valuation of the company's shares amid the sell-off is becoming more attractive. We would buy," Rasgon noted in a note cited by Barron's.

Since the beginning of the year, the market value of Nvidia has increased by 29%. By comparison, the main U.S. stock index, the S&P 500, has gained about 14% over the same period. More than 90% of analysts tracking Nvidia's stock are advising investors to buy it (Buy and Overweight ratings), and Wall Street's consensus target price suggests the company's market value is up another nearly 40% from the close of previous trading, according to MarketWatch.

This article was AI-translated and verified by a human editor