Nvidia(US:NVDA) Hua Er Jie Jian Wen·2025-11-26 00:30Core Viewpoint - Nvidia is responding to competitive pressures and short-seller criticisms through unusual public and private actions, which may indicate a lack of confidence rather than quell investor concerns [1][2]. Group 1: Market Response - Nvidia's stock fell approximately 2.6% on the day of its public statement, reaching a new closing low in over two months, while Alphabet's stock rose 1.6%, nearing a market capitalization of $4 trillion [1]. - The company's unusual communication strategy has led analysts to perceive it as "reactive," suggesting that a confident leader would rely on performance and products rather than feeling compelled to defend against every criticism [9]. Group 2: Competitive Landscape - Nvidia publicly asserted its GPU technology is "a generation ahead" of Google's offerings, emphasizing its ability to run all AI models across various computing scenarios [3]. - Concerns are growing that if major clients like Meta shift to Google's Tensor Processing Units (TPUs), it could signify a breach in Nvidia's dominant market position, which currently holds over 90% of the AI chip market [5]. Group 3: Internal Communications - Nvidia distributed a seven-page memo to Wall Street analysts to counter claims of accounting fraud, circular financing, and an AI bubble, particularly addressing criticisms from notable investors like Michael Burry [2][6]. - The memo clarified that Nvidia's accounting practices are sound and that the company does not engage in special purpose entity financing, while also defending the depreciation timelines of its GPUs [6][7].