Nvidia (NVDA) Stock Sell-Off Analysis: Demand Dynamics & Competitive Risks

Recent market data shows Nvidia (NVDA) experienced a 7.81% drop on 2025-11-20, followed by high volatility [0]. Google DeepMind researcher Amir Yazdan claimed investors misunderstand AI hardware demand, stating companies buy GPUs like B200 for AI model development with consistent demand [6]. However, Meta is considering switching to Google’s TPUs, posing a competitive risk [5]. The Technology sector underperformed, with a 0.149% gain [0].

1. Investor misunderstanding of AI hardware fundamentals contributes to market volatility [6].
2. Emerging competitive threats from alternative AI chips (Google TPUs) are impacting NVDA’s stock price [5].
3. Hidden B2B demand exists but is not fully priced in [6].

• Meta’s potential switch to Google TPUs could reduce NVDA’s market share [5].
• Macroeconomic headwinds may lower demand for AI services, indirectly affecting chip sales [6].
• Long-term competition from China’s domestic AI chips [6].

• Sustained B2B demand for AI chips in use cases like fraud detection [6].

NVDA stock dropped 7.81% on 2025-11-20, with high trading volume (343.5M shares) [0]. The sell-off reflects mixed sentiment: investor misunderstanding of AI demand, competitive threats from Google’s TPUs, and hidden B2B opportunities. Meta’s upcoming chip supplier announcement is a critical factor to monitor [5].