NVIDIA Falls on Google & Meta Chip Deals

Introduction

NVIDIA (NVDA), a Dow Jones Industrial Average component and the dominant supplier of GPUs for AI, experienced notable volatility this week. Short-term selling was triggered by concrete competitive developments: reports that Meta is in talks to buy Google’s tensor-processing units (TPUs) and Google’s rollout of Gemini 3 trained on TPUs. Those headlines collided with otherwise robust commercial momentum — strong quarterly data-center revenue and major infrastructure partnerships — creating a nuanced picture for investors.

Immediate Catalyst: Meta and Google Move on TPU Compute

News that Meta is negotiating multi‑billion‑dollar purchases and potential rentals of Google TPUs directly affected investor sentiment. Institutional buyers of AI compute represent high-volume demand, and a material shift from Nvidia GPUs to Google TPUs would reallocate a significant pool of future AI spending.

Market reaction and stock impact

Following the reports, NVDA shares dropped sharply in intraday trading (moves in the low single-digit to mid-single-digit percentages across the week), while Alphabet shares strengthened. The market’s reaction reflects investor sensitivity to the concentration of hyperscaler demand: even incremental share loss at those customers can translate into large revenue swings for Nvidia.

Underlying Fundamentals: Record Data-Center Revenue and Infrastructure Wins

Despite the competitive headlines, Nvidia’s recent financial performance and strategic deployments underscore the company’s enduring commercial strength.

Quarterly results and data-center demand

Nvidia reported strong quarterly results driven by data-center sales, where demand for AI‑training and inference GPUs remains high. Large orders for its newest Blackwell‑family chips continue to contribute materially to revenue, supporting the company’s near-term top-line outlook even as sentiment wavers.

Foxconn partnership and Blackwell GB300 deployment

In Asia, Foxconn announced a sizable AI supercomputing build that will deploy Nvidia Blackwell GB300 chips. The facility — a multi‑hundred‑million‑to‑billion dollar undertaking — is scheduled to come online in the next several quarters and will bolster shipments of Nvidia’s latest accelerators. Infrastructure projects like this demonstrate ongoing demand from system integrators and hyperscalers for Nvidia’s stack.

Gaming and Software: Operational Responses That Matter

Outside the hyperscaler contest, Nvidia addressed immediate customer pain points and adjusted deployment timelines where needed, signaling active product stewardship.

Emergency GeForce driver hotfix

Nvidia released an emergency GeForce driver update to correct a severe performance regression introduced by a recent Windows cumulative update. Rapid remediation helped limit reputational damage among gamers and preserved the stability of Nvidia’s mainstream client business.

GeForce Now India delay

The rollout of GeForce Now in India was postponed to allow further server and latency improvements. While delays can disappoint regional subscribers, prioritizing quality of experience can reduce churn and improve long‑term adoption in a large addressable market.

What This Means for Investors

The week’s developments create two competing narratives. On one hand, the Meta–Google TPU conversations and Google’s Gemini 3 launch on TPUs are concrete competitive events with direct implications for Nvidia’s future addressable compute spend among hyperscalers. On the other hand, Nvidia’s strong data‑center revenue, large-scale Blackwell deployments, and operational responsiveness show continuing demand and execution capability.

For investors, the takeaway is pragmatic: short‑term price volatility reflects shifts in perceived hyperscaler loyalty and potential share reallocation among compute suppliers. However, Nvidia’s product momentum and infrastructure contracts keep its revenue trajectory robust in the near term. Monitoring confirmed purchase agreements from hyperscalers, shipment cadence for Blackwell parts, and subsequent quarterly guidance will be the clearest indicators of whether competitive moves translate into durable revenue share shifts.

Conclusion

This week demonstrated that tangible competitive actions — not just rhetoric — can move NVDA stock. Reports of Meta engaging Google for TPUs and Google deploying Gemini 3 on TPUs compressed Nvidia’s valuation in the short term, even as solid quarterly data‑center results and strategic infrastructure deals provided counterbalancing support. Investors should focus on verified customer contract announcements, Nvidia’s shipment volumes for Blackwell chips, and follow‑on guidance to judge how these events will ultimately affect NVDA’s earnings trajectory.