Nvidia’s stock dropped 2.6% on Tuesday in New York after reports emerged that Meta plans to use AI chips supplied by Google.
Currently, Nvidia dominates the market for AI chips. However, major companies like Meta, the owner of Facebook and Instagram, are exploring alternative suppliers to reduce their reliance on Nvidia.
In response to the news, Nvidia stated on X: “We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google."
It added, however, that "NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done."
While Nvidia’s stock fell, Alphabet, Google’s parent company, saw its shares rise by 1.5%.
Overall, the mood on Wall Street was positive. Monday’s gains continued into Tuesday, marking a strong start to the shortened trading week.
The Dow Jones index closed 1.4% higher at 47,112.45 points. The broader S&P 500 rose 0.9% to 6,765.88 points, while the tech-heavy Nasdaq climbed 0.7% to 23,025.59 points.
