NVDA Stock Sell-Off Analysis: Investor Misunderstanding vs. AI Hardware Demand Realities

The event centers on a Reddit discussion ([1]) about recent Nvidia (NVDA) stock sell-off and comments from Amir Yazdan, a Google DeepMind researcher and TPU engineer. Yazdan claims the sell-off reflects investor misunderstanding of AI hardware demand, stating companies buy high-end GPUs like B200 for AI model development/operation where demand remains consistently high. The discussion includes:

• Bearish Arguments
  : Poor macroeconomic conditions reducing AI service demand; Yazdan’s positive stance may be biased due to professional incentives; investor ignorance of AI hardware; long-term risks from competition (China’s AI chips) or AI bubble burst.
• Bullish Argument
  : Hidden B2B AI use cases (e.g., fraud detection systems) driving sustained GPU demand.

: NVDA stock experienced significant volatility between Nov13-26, 2025 ([0]). A sharp drop of 7.81% on Nov20 coincided with rumors of Meta’s potential deal with Google for TPUs, which pressured NVDA shares ([2]). The stock partially recovered in subsequent days but remained down ~3.5% from Nov13 levels ([0]).
: Mixed. Jim Cramer argues the sell-off is fear-driven, not fundamental ([3]), while Evercore ISI raised NVDA’s price target to $352 (bullish stance) ([4]). Uncertainty persists around competition from TPUs vs NVDA’s GPU dominance ([2], [4]).

• Price Movements
  : NVDA closed at $180.26 on Nov26 (down from $186.86 on Nov13) ([0]). The largest daily drop was 7.81% on Nov20 ([0]).
• Volume
  : High trading volume on volatile days: 343.5M shares on Nov20 ([0]).
• Analyst Action
  : Evercore ISI raised NVDA’s price target from $261 to $352 (Buy rating) on Nov20 ([4]).

• Directly Impacted
  : Nvidia (NVDA) ([0], [2]).
• Related Sectors
  : AI hardware, semiconductors, cloud computing ([2]).
• Downstream
  : Meta (shifting to Google TPUs), Google (TPU supplier), and AI companies using GPUs ([2]).

:

• Verification of Amir Yazdan’s original X post (web searches did not retrieve it).
• Recent financial metrics (e.g., Q3 2025 earnings details) to confirm demand fundamentals.
• Data on hidden B2B AI use cases (e.g., market size, NVDA’s share).

:

• Bullish
  : Hidden B2B demand ([1]), strong analyst support ([4]), and NVDA’s leadership in GPU performance ([2]).
• Bearish
  : Competition from TPUs ([2]), macroeconomic risks ([1]), and AI bubble concerns ([1]).

:

• Finalization of Meta’s deal with Google for TPUs.
• NVDA’s upcoming earnings report (to confirm demand trends).
• Verification of Yazdan’s comments and additional context.

• Users should be aware that competition from Google’s TPUs (as indicated by Meta’s potential deal) may impact NVDA’s market share and stock performance ([2]).
• This development raises concerns about the potential AI bubble burst, which could lead to a significant drop in NVDA’s stock price ([1]).
• Macroeconomic conditions reducing AI service demand may negatively affect NVDA’s long-term growth prospects ([1]).

This analysis provides factual information and context to support decision-making, not investment advice. Users should conduct further research before making financial decisions.