Nvidia Stock Slides on Alphabet Competition Fears: Is This a Buy-the-Dip Moment?

Shares of Nvidia (NASDAQ: NVDA), the leading supplier of artificial intelligence (AI) accelerators for data centers, were knocked down hard this week when reports circulated that social media company Meta Platforms (NASDAQ: META) may be considering a chip deal with Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) to help power some of its data centers beginning in 2027. This news may have caught Nvidia investors off guard, as Nvidia has been the center of the AI data center buildout boom for years.Additionally, the news was particularly surprising, as Nvidia had made no indication during its most recent earnings report of any meaningful U.S.-based competition in the AI chip space.Of course, 2027 is far off -- and a lot can change between now and then. But the fact that Meta is even reportedly considering relying on an Nvidia alternative for some of its AI data center buildout is concerning its shareholders, since Nvidia now generates almost all of its revenue from data center chip sales.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool