Nvidia’s stock went up again on Wednesday. It rose a little over 2 percent in early US trading. This helped the company recover some of the losses from the day before. The small rise came at a time when many people are worried about whether Nvidia can keep its strong hold over the AI chip market.
Nvidia has been at the center of the AI wave. Its chips power most of the technology that companies are building today. That is why its share price has been climbing rapidly for the past few years. But the recent drop showed that the AI market is no longer moving as one big group. Some stocks are rising, while others are slowing down.
Alphabet’s stock, for example, slipped slightly on Wednesday. This came right after the company gained more than 1 percent in the previous session. Alphabet has been getting close to a four trillion dollar market value.
Earlier reports said that Alphabet was in talks with Meta. Google may supply Meta’s data centers with its own AI chips. This comes at a time when Google has been trying to grow its chip business. The company also enjoyed a positive response to its Gemini 3 AI model and received new investment support from Warren Buffett’s Berkshire Hathaway. Analysts say Google now wants to rely less on outside chip makers and build more of its own.
Citi analysts noted that Google’s AI tools are slowly gaining more users. They believe this could grow because Google already operates services used by billions every month.
But Google’s rise also brings new pressure for Nvidia. Some experts feel that Google becoming stronger in chip making could increase competition. There are also worries about complicated financial deals in the AI world. Many of these deals involve Nvidia giving money to companies that then spend heavily on Nvidia’s chips. Critics say this creates a loop that could lead to trouble.
Nvidia’s shares are still up more than 31 percent in the past year. But fear of an AI bubble has made people more cautious. Some compare the situation to the dot-com crash more than twenty years ago.
Reports also say Nvidia has tried to calm doubts. The Wall Street Journal said the company pushed back on criticism from investors like Michael Burry, the man known for “The Big Short.” Nvidia said its business is strong and that it reports everything clearly. Some analysts felt the company sounded defensive while making these claims.