Nvidia (NVDA) is again making its voice heard in the AI chip race. The company has welcomed Google’s (GOOGL) push in the AI chip market, even as it stressed that it still leads that segment. NVDA stock was initially rattled by a wave of fear-driven selling after reports surfaced about new competition. Later on, the stock recovered after Nvidia strongly defended its market dominance, backed by continued confidence from Wall Street analysts.
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Earlier this week, The Information reported that Meta (META) is considering using chips designed by Google. According to the report, Google is accelerating its push to compete directly with Nvidia in the AI semiconductor market.
Nvidia Defends Its Market Lead
Following the reports, Nvidia posted on X, “We’re delighted by Google’s success — they’ve made great advances in AI, and we continue to supply to Google.”
It also emphasized its leadership, adding, “Nvidia is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.” The company further noted that its chips deliver stronger performance, greater flexibility, and broader use cases compared to ASICs (Application-Specific Integrated Circuits), which are built to handle only specific AI tasks or frameworks.
Wall Street Stands by NVDA Stock
After the Meta–Google chip deal created buzz, Mizuho Securities analyst Vijay Rakesh played down the threat, reaffirming his Buy rating on NVDA. Rakesh believes Nvidia is supported by a “well-diversified AI GPU pipeline” and a strong, balanced GPU roadmap.
Likewise, Citi’s top-rated analyst Atif Malik reiterated his Buy rating on NVDA recently, predicting an upside of almost 50%. Malik stated that Meta and Microsoft (MSFT) are still likely reliant on Nvidia chips, even as they spend heavily to scale up their AI efforts.
Meanwhile, BofA’s Vivek Arya stated that Nvidia’s recent stock pullback came from investors “misreading the numbers.” He urged clients to look past short-term volatility and instead focus on the company’s “strong demand signals” and impressive free cash flow performance.
Is Nvidia a Buy or Sell Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 39 Buys, one Hold, and one Sell assigned in the last three months. At $257.72, the Nvidia average share price target implies a 43% upside potential.
