Google DeepMind Scientist Criticizes Market as Nvidia, AMD Stocks Plummet
Recent market trends revealed a significant decline in the stocks of Nvidia Corp and Advanced Micro Devices (AMD). On Tuesday, Nvidia’s stock fell by 2.59%, reaching a closing price of $177.82. Meanwhile, AMD’s shares experienced a drop of 4.15%, closing at $206.13. In after-hours trading, Nvidia lost an additional 0.52%, while AMD saw a decrease of 1.04%, according to data from Benzinga Pro.
DeepMind’s Critique of Market Perception
The unexpected selloff followed reports that Meta Platforms Inc. is considering utilizing AI chips from Alphabet Inc.’s Google for its data centers. This development signals a potential shift in the competitive landscape of the AI hardware market. A researcher from Google DeepMind, Amit Yazdan, criticized the market’s reaction, stating that it reflects a misunderstanding of the demand for AI hardware.
Stock Movements and Competitor Insights
- Nvidia: Closed at $177.82, down 2.59% on Tuesday.
- AMD: Closed at $206.13, down 4.15% on Tuesday.
- After-hours trading:
- Nvidia: Down 0.52%
- AMD: Down 1.04%
Yazdan emphasized the market’s need to better understand the existing and growing demand for AI hardware. His comments suggest that the volatility in stock prices does not accurately represent the underlying market dynamics.
Nvidia’s Response and Market Dynamics
In a related development, Nvidia publicly congratulated Google for its advancements in AI technology. The company asserted its competitive position by claiming it remains “a generation ahead” in the AI hardware domain.
Jim Cramer, a prominent financial commentator, indicated that Broadcom Inc. might benefit significantly from Google considering a partnership with Meta on AI chips. He highlighted CEO Hock Tan’s involvement with Meta’s board as a key factor in this potential collaboration.
Conclusion
The current fluctuations in Nvidia and AMD stocks raise questions about market understanding of AI hardware demand. As companies like Google and Meta explore new technological partnerships, the landscape of AI chip development continues to evolve, indicating a shift in where the demand may lie.
