Market|Investors booed Nvidia as Meta was rumored to be in talks with Google for a multi-billion dollar chip deal.
The summary is made by artificial intelligence and checked by a human.
Chip manufacturer Nvidia’s share price fell almost seven percent on Tuesday, as the software giant Meta was rumored to be negotiating a billion-dollar chip deal with Google.
The Reuters news agency reported that Meta planned to use artificial intelligence chips manufactured by Google in its data centers starting in 2027.
Nvidia’s value has fallen by about 17 percent from the peak prices at the end of October, but the company’s market value is still more than four trillion dollars.
World the price of the most valuable company, the chip giant Nvidia, was down almost seven percent on Tuesday evening, but the decline gradually eased below six percent.
According to stock market commentators, the chip giant’s price drop was due to the fact that Meta, the owner of several popular social media services, was negotiating a billion-dollar chip deal with Google.
Nvidia’s value has already fallen by around 17 percent from the peak prices at the end of October. In two years, the value of the company has more than tripled and is currently more than four trillion dollars, or more than 4,000 billion dollars.
Nvidia’s the share of the world’s most important stock index, i.e. the US S&P500, is about seven percent, so the company’s movements shake up markets all over the world.
On the other hand, the share of Alphabet, which owns Google, rose by almost two percent on Tuesday. It smoothed out the impact of Nvidia’s decline on the market. Even Alphabet’s market value is almost four trillion dollars.
In addition to Nvidia, the shares of other chip companies also suffer from the Meta rumors.
The Reuters news agency reported on Tuesday that Meta plans to use chips manufactured by Google in its data centers from 2027.
Until now, Google has used its TPU semiconductors for artificial intelligence processing only in its own data centers. According to Reuters, the company plans to lease chips to Metal as early as next year.