In November, Nvidia stock dropped 12.6% amid concerns of an AI bubble. Google’s new Gemini 3 model challenges Nvidia’s dominance by using its own chips for training, raising questions about Nvidia’s pricey GPUs. Despite record Q3 earnings, Nvidia’s stock fell due to fears of an AI bubble bursting.

Google’s Gemini 3 model trained on its own chips challenges Nvidia’s AI chip dominance. While Nvidia’s GPUs are more powerful, Google’s TPUs are cheaper to produce and run, leading to doubts about Nvidia’s premium pricing strategy. Nvidia’s Q3 earnings showed strong growth, but the AI bubble fears persist.

Nvidia’s stock has rebounded 4.3% in December, but long-term doubts remain about its valuation. The company’s success hinges on the continuation of its growth trajectory amid increasing competition. Investors should be cautious as the AI industry’s real economic impact remains unclear, questioning the sustainability of Nvidia’s high valuation.

Read more at Nasdaq: Nvidia Stock Price Slumped 12.6% in November. What’s Next For The Artificial Intelligence (AI) Behemoth?