Google's market value soars close to $4 trillion! NVIDIA's value shrinks by $115 billion overnight, AI chip race reshapes the Tech Stocks landscape

Big震撼在科技圈。 On Tuesday, during the trading session, Alphabet’s stock price rose, pushing its market value close to $3.9 trillion, with an annual increase surpassing 70%, and a rapid 35% surge in just six weeks. Meanwhile, its rival, Nvidia, became the “loser,” with a stock plunge of over 7%, evaporating more than $115 billion in market cap in a single day. What exactly happened behind this reversal?

From Single Core to Dual Engines: Google’s AI Chips Suddenly “Rise to Power”

The real turning point is Google’s TPU (Tensor Processing Unit) acceleration chips suddenly entering the mainstream spotlight.

Last week, Google’s Gemini 3 large model achieved remarkable results, not only matching OpenAI in technical performance but also—most importantly—this system is entirely based on Google’s self-developed AI chips. Nomura strategist Charlie McElligott bluntly stated: “Gemini 3 has reset the AI competition’s playing field.”

Even more exciting news is that Meta is considering shifting part of its large-scale AI training budget from Nvidia to Google TPU. It’s worth noting that Meta is one of Nvidia’s biggest backers, and this move is interpreted by the market as a “potential major industry turning point.”

Chain Reaction: Tech Stocks Sector Shakes Across the Board

Nvidia suffered the most. Besides Nvidia itself dropping 2.59%, related concept stocks also couldn’t escape—Advanced Micro Devices (AMD) down 2.5%, AMD down 4.1%, CoreWeave down 3.1%, Nebius down 3.3%.

Interestingly, Nvidia’s official response was rare: “We are pleased with Google’s success.” But they immediately emphasized their chips’ versatility, implying that ASIC chips like TPU are only suitable for single functions. However, investors clearly aren’t convinced—market focus has shifted to Google’s AI product line and customer expansion potential.

Buffett’s Endorsement Fuels the Fire, Google’s Valuation Reassessment Imminent

In addition to product line strengthening, there’s a significant signal—Berkshire Hathaway quietly built a multi-billion dollar position in Alphabet in Q3, marking Warren Buffett’s first purchase of Google stock.

The entry of the value investing master is interpreted as a clear endorsement of Google’s AI strategy. The market generally believes that Google’s current valuation still has considerable upside relative to its AI potential.

Long-term Return Rate Calculation: 20 Years Up 150 Times

Looking back, Alphabet went public in August 2004 at an adjusted per-share price of $2.13. Based on the current stock price, the stock has appreciated approximately 150 times—meaning, an investment of $1 in 2004 is now worth about $150.

This is not just a historical number game. Google’s long-term growth trajectory—from transformative impacts in search, advertising, and YouTube to the current rise of AI business—each wave has found new engines for stock price growth.

Changes in the AI Supply Chain Landscape: From “Monopoly” to “Dual Technology System”

As Google’s AI model capabilities rapidly advance and its TPU chips garner increasing market attention, the entire industry is beginning to reassess the competitive landscape of the AI supply chain.

Over the past year, Nvidia, as the dominant AI computing power leader, faced little challenge. But now, Google’s rapid rise has broken this pattern, prompting the market to seriously consider: Will Nvidia face its first substantial “competitive challenge” at the chip level? Can Google become a new force in the AI infrastructure market? How likely is the AI market to shift from a “single core supply chain” to a “dual technology system”?

Regardless, one thing is certain: The next phase of AI competition will not only be about models but also a comprehensive contest involving computing power, ecosystems, customer relationships, and capital investment. Google’s strong rise is reshuffling Silicon Valley, while Nvidia’s rapid pullback sounds an alarm—AI is no longer dominated by a single company; competition is becoming more intense, more diverse, and more unpredictable.