Nvidia Shares Fall on Reports of Google Competition
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Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco. This is Bloomberg Tech. Coming up, Meta eyeing Google's AI chips, according to reports. How the market is questioning Nvidia's long-term dominance. Plus, Xi Jinping brings the issue of sovereignty over chip hub Taiwan back on the agenda with Donald Trump during their phone call. And Apple eliminates sales roles in a rare layoff to streamline the way it offers products to businesses and governments. We have the details. But first, let's check in on these markets that are trying to digest a wall of delayed data at the same time as baking in maybe an 80% chance of a Fed rate cut. That's what the market price is in.
But all eyes on tussle at the top in AI dominance. I'm looking at a 0.5% drop on the NASDAQ 100. On the upside, some key players. On the downside, we're seeing a key drag from some of the key chip names in particular. Let's delve into what's moving this particular index, which does lag the S&P and the Dow today. We're seeing Nvidia off by 5%. No wonder the Nasdaq 100 is underwater when the world's most dominant player from a market cap perspective is currently off by 5%. Big moves for a $4 trillion company. And in large part, It's because of Alphabet. That actually is trimming its gains, but still at a new record high. This is, we understand, meta-eyeing TPUs. This is all about the dominance of where we get the chips of the future to train our models as well as use our models.
Meta is the key line of questioning here. Is meta-eyeing TPUs from Google to put in its own data centers? They're the reports coming from the information today. Let's talk about the market reaction. Equity reporter Ryan Glastelica is here with us. Ryan, it's monumental move that Alphabet has had since mid-October. It's added a trillion in market capitalization. We're starting to become aware of its prowess in AI and in chips. Yeah, absolutely. Thanks for having me. So yeah, certainly sentiment has really reversed on Alphabet, and I think people are really appreciating how dominant it is across every layer of the AI stack. Of course, it recently released the latest update to Gemini, which was seen as very strong across all the major benchmarks that people use to evaluate AI models.
The chip business is getting a lot of attention lately between the report with Meta and the deal with Anthropic. People really see this as a really significant potential competitor to Nvidia, as you were discussing earlier. And beyond that, it has a huge cloud business that is seeing accelerating growth. It has so much data and users and distribution and talent. It really has all of the pieces and that has really helped the stock surge, not just recently, but over the past several months. It is by far the biggest performer or the best performer of the Mag7 this year. I think counterpoint research analyst and co-founder Neil Shah and Astorion Bloomberg saying it's a sleeping giant in the AI race and is fully awoken.
But many have been trading for the last few days ever since Gemini 3 release, maybe going short open AI suppliers and long alphabet suppliers. Is that still bearing out? I'm looking at Oracle down once again, Ryan. Oracle has really been under a lot of pressure lately. I think it's on track for its biggest one month drop since 2001, so certainly a real reversal there. It does seem like people are moving towards the Google and Alphabet suppliers, which is companies like Broadcom, while at the same time, the companies that are more connected to OpenAI, you mentioned Oracle, also AMD, Microsoft to a certain extent, these companies have really been under a lot of pressure lately.
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