Nvidia Stock Selloff Seen as Buying Opportunity Amid AI Chip Competition

Nvidia shares plunged 6% to a three-month low following reports that Meta Platforms may shift to Google's tensor processing units for data centers by 2027. The selloff reflects growing concerns about competition in AI hardware, particularly after Google's Gemini 3 was trained on Broadcom co-designed chips rather than Nvidia's processors.

Jim Cramer characterized the decline as a mispricing, emphasizing Nvidia's $500 billion order backlog for its next-generation Blackwell and Vera Rubin chips. "The GPU demand pipeline remains insatiable," he noted on CNBC, dismissing price sensitivity concerns from select customers as negligible to Nvidia's dominant market position.

The volatility underscores broader pressures on AI-related valuations, with Cramer warning that investors require either full conviction in the sector's long-term potential or should avoid it entirely. The current market sentiment echoes earlier cycles where temporary technological shifts sparked disproportionate selloffs in market leaders.