Nvidia’s dominance in the artificial intelligence (AI) sector was shaken by the acclaim for Google’s “Gemini 3.0.” Nvidia’s stock price fell more than 2% in after-hours trading. SK Hynix, a key company in Nvidia’s value chain, closed lower despite the “winds of December’s interest rate cut.”
According to the New York Stock Exchange on the 25th, Nvidia lost more than 2% in after-hours trading. Meanwhile, Google, which had gained more than 6% the previous day, is still up about 2% in after-hours trading.
This comes as positive reviews of Gemini 3.0 continue . OpenAI CEO Sam Altman, after testing Gemini 3.0, said, “Now we have some catching up to do,” lamenting the current unfavorable climate.
Tesla CEO Elon Musk also acknowledged Gemini’s achievements with an unusually positive message on his X account, writing, ” Congratulations .” Seo Sang-young, managing director of Mirae Asset Securities’ WM Innovation division, explained:
“The main reason is that Gemini 3.0 uses Google’s Tensor Processing Unit (TPU), the semiconductor designed by Google for artificial intelligence. This could incentivize other companies to opt for Google chips rather than the more expensive Nvidia chips .” He added: “Meta is evaluating the possibility of leasing Google TPUs starting next year and using them in its data centers starting in 2027.”
Following this news, the stock prices of companies in Google’s TPU value chain soared on the domestic stock market, while those in Nvidia’s value chain fell.
Isu Petasys , which supplies the multilayer printed circuit boards (MLBs) used in Google’s TPUs, jumped 12.47%. Yang Seung-soo, a researcher at Meritz Securities, said, “Isu Petasys’ market share in Google’s TPUs is estimated to be over 40%” and predicted that “TPU shipments will at least double next year.” He added, ” Although its valuation (stock price relative to performance) has recently increased, its valuation will further increase as it rapidly emerges as a key value chain for TPUs.”
The previous day, stocks such as Broadcom (11.10%) and Marvell Technologies (8.19%), which supply products to Google, also surged in overseas markets. However, some analysts argue that the AI era shouldn’t be viewed as a monopoly between NVIDIA and Google, as demand for AI is rapidly expanding.
Researcher Yang said, “Even after signing a TPU contract with Google, US AI R&D firm Antropic signed a new GPU order with NVIDIA,” and “Meta and others have shifted their focus from reducing NVIDIA GPU orders to introducing some TPUs.”
He added: “Even Gemini 3.0 hasn’t yet addressed the hallucination phenomenon, so performance variations between the two major technology models are also variables to keep an eye on.”
Some also predict that as the application-specific integrated circuit (ASIC) market grows, opportunities for domestic semiconductor companies to diversify their suppliers could increase.
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