“`html
Jensen Huang is interviewed by media during a reception for the 2025 Queen Elizabeth Prize for Engineering, at St James’ Palace November 5, 2025 in London, England, U.K.
Yui Mok | Getty Images Entertainment | Getty Images
Heavy is the head that wears the crown. The reign of Nvidia, while still dominant, is facing increasing headwinds.
Shares of Nvidia (NVDA) experienced a 2.6% dip on Tuesday, signaling potential turbulence within the AI chip giant’s domain. This comes amid growing unease surrounding the company’s premium valuation and persistent scrutiny of its accounting practices.
Concerns mounted throughout the month, fueled by investor skepticism regarding Nvidia’s elevated valuation. Adding to the pressure, notable investor Michael Burry (“The Big Short”) has publicly challenged the lifespan estimations assigned to Nvidia’s advanced chips. Burry alleges that these inflated projections artificially inflate the company’s reported profits, a claim Nvidia disputes.
Last week ushered in a new wave of competitive pressure. Google (GOOG) unveiled Gemini 3 on November 18th, their next-generation AI model. While Nvidia isn’t directly involved in LLM development, the fact that Gemini 3 is reportedly powered by Google’s internally developed AI chips presents a direct challenge to Nvidia’s core business. This move highlights a strategic shift among hyperscalers towards internal chip development to optimize performance and potentially reduce reliance on external vendors.
Adding further complexity to the situation, Meta (META), a key consumer of AI chips, seemingly hinted at a potential shift in strategy on Monday. Reports suggested Meta is considering utilizing Google’s ASIC chips, not just for experimentation but potentially for large-scale deployment within its expansive data centers. This potential endorsement could significantly legitimize Google’s chip development efforts and erode Nvidia’s market share.
In response to the growing anxiety, Nvidia took to platform X to assert the superior power and versatility of its GPUs compared to rival ASIC chips, including Google’s TPUs. This public defense, unusual for Nvidia, underscores the company’s awareness of the rising competitive pressure. Simultaneously, Nvidia circulated a private memo to Wall Street analysts, aiming to refute Burry’s allegations and reaffirm its financial stability. The memo likely contained detailed technical and financial data to counter the claims.
The confluence of these factors underscores a critical juncture for Nvidia. The company’s market leadership is undeniable, yet the tech landscape is rapidly evolving. The rise of custom silicon developed by tech giants like Google and Meta represents a potent challenge to Nvidia’s dominance, potentially ushering in a more fragmented and competitive market. The long-term implications of this shift could reshape the AI infrastructure landscape, impacting pricing, performance, and innovation cycles.
Maintaining power, whether in the political arena or the semiconductor industry, demands a delicate equilibrium. Strategic communication is paramount. Silence from a dominant power can project unwavering confidence but risks appearing aloof. Addressing concerns can reassure stakeholders but might inadvertently expose vulnerabilities.
For now, Nvidia remains the undisputed leader in the AI chip market. However, the weight of that crown is demonstrably growing heavier.
What you need to know today
The UK Autumn Budget 2025 is here. Britain prepares for a “smorgasbord” of tax hikes to be unveiled Wednesday. Follow CNBC’s coverage of the Budget throughout the day on our live blog here.
U.S. stocks advanced on Tuesday. Major indexes had their third straight winning session, erasing earlier intraday losses. Asia-Pacific markets rose Wednesday. Shares of Foxconn climbed more than 3% after the firm received approval for a contract amendment.
Meta is looking to use Google AI chips. That’s according to a Monday report by The Information. Nvidia on Tuesday wrote on X that its chips are “a generation ahead of the industry.” The chipmaker also sent analysts a memo on alleged bubble claims.
Taiwan President pledges $40 billion more for defense. Lai Ching-te, Taiwan’s leader, on Wednesday said the self-governing island will improve its self-defense capabilities in the face of “unprecedented military buildup” by China.
[PRO] What to watch as UK budget is unveiled. Strategists told CNBC they will be monitoring the budget’s effects on interest rates, economic growth and the British pound — and one “rabbit out of the hat” from U.K. Finance Minister Rachel Reeves.
And finally…
Lights on in skyscrapers and commercial buildings on the skyline of the City of London, UK, on Tuesday, Nov. 18, 2025. U.K. business chiefs urged Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid raising the tax burden on corporate Britain as she prepares this year’s budget.
Bloomberg | Bloomberg | Getty Images
The UK’s Autumn Budget is coming: Here’s what it could mean for your money
The run-up to this year’s U.K. Autumn Budget has been different from the norm because so many different tax proposals have been floated, flagged, leaked and retracted in the weeks and months leading up to Wednesday’s statement.
It has also made it harder to gauge what we’re actually going to get when Finance Minister Rachel Reeves finally unveils her spending and taxation plans for the year ahead.
— Holly Ellyatt
