Nvidia Stock Is Selling Off on Google-Meta Deal. Should You Buy the NVDA Dip Today?

Core Viewpoint - Nvidia's stock is experiencing a decline due to reports that Meta Platforms is considering switching to Google's tensor processing units for its AI data centers, which could significantly impact Nvidia's business by 2027 [1][3]. Group 1: Market Impact - Nvidia shares have dropped approximately 18% from their year-to-date high reached in late October [2]. - The potential shift by Meta to Google's custom chips indicates increasing competition in the AI hardware market, which could threaten Nvidia's dominance [3][4]. - If major clients like Meta diversify their supply chains away from Nvidia, it could severely affect Nvidia's top-line growth and pricing power [3][4]. Group 2: Analyst Perspectives - Despite the recent decline, former hedge fund manager Jim Cramer advises long-term investors to consider initiating or expanding their positions in Nvidia, citing strong fundamentals and a projected demand of $500 billion [5][6]. - Cramer highlighted the "insatiable" demand for Nvidia's Blackwell chips and the next-gen Vera Rubin platform, predicting that these factors could drive Nvidia shares to record levels by 2026 [6]. - TD Cowen analysts maintain a "Buy" rating on Nvidia with a price target of $235, suggesting a potential upside of nearly 40% from current levels [6][7].