Large models and AI chips are blooming, Google's market value rises by 10 trillion, threatening Nvidia's dominance

On November 25, Bloomberg reported that after Google made progress in self-developed AI chips and demonstrated its ability to challenge Nvidia’s best-selling AI accelerator, the stock price of Google’s parent company Alphabet is expected to shake the ranking of the world’s most valuable companies.

Google's latest Gemini 3 model has been well received, and its AI chips have also shown market demand, which has pushed the company's stock price higher., prompting investors to reassess the technology industry landscape and possible changes to stock market leaders.

Since mid-October last year, Alphabet's stock price has risen by 35%, and its market value has increased by nearly $1 trillion during this period. So far this year, Alphabet’s market value has increased by more than 1.5 trillion US dollars (approximately 10.65 trillion yuan).As of Monday's close, Alphabet's gains this year have put its market value about $590 billion behind Nvidia's $4.4 trillion.

Alphabet’s market value has increased by more than 10 trillion yuan this year

According to technology website The Information, Facebook parent company Meta is negotiating with Google and plans to use Google's tensor processing units (TPU) in its data centers in 2027. In addition, Meta may also rent chips from Google Cloud Services next year.

"Although NVIDIA is expected to achieve amazing growth, the market will naturally be more wary of competition now," said Alexandra Morris, investment director at Skagen AS. "The previous market consensus that NVIDIA will be the only chip supplier for data center construction has changed."

Google's agreement with Meta will help establish TPU as an alternative to Nvidia chips.Currently, Nvidia chips are regarded as the gold standard for various technology giants and startups such as Meta and OpenAI. These companies all need powerful computing power to develop and run AI models.

Alphabet shares were on track to rise for a third consecutive day, rising as much as 3.5% in pre-market trading on Tuesday. NVIDIA's stock price fell 3.5%, and smaller rival AMD also fell 3%.