Nvidia defended its position in the artificial intelligence industry as shares of rival Alphabet surged, creating a divergence between the two tech giants.
Alphabet’s stock reached all-time highs on Tuesday, fueled by investor excitement over its upgraded Gemini 3 AI model and a report that Meta is considering purchasing the company’s AI chips. In contrast, Nvidia’s shares closed down more than 2% and continued to decline in premarket trading. In response to the Meta report, Nvidia issued a statement on social media claiming its technology is “a generation ahead of the industry.” While acknowledging it is a supplier to Google, Nvidia asserted that its chips are more powerful than competitors’ products. In a related development, Dell announced it expects a strong fourth quarter driven by sales of its AI-powered systems.
Meanwhile, the broader stock market continued its recovery rally, with the Dow Jones Industrial Average leading gains by climbing more than 660 points, or 1.4%. Investor optimism was largely tied to the increasing likelihood of an interest rate cut at the Federal Reserve’s December meeting. According to CME Group’s FedWatch tool, traders are now pricing in an 84% chance of a rate decrease, up from approximately 50% just a week ago. Speculation was heightened by a report that White House National Economic Council Director Kevin Hassett, who is perceived as an advocate for further cuts, is a frontrunner to succeed Fed Chair Jerome Powell.
In international news, Ukraine is reportedly willing to proceed with a U.S.-backed peace framework to end its long-running war with Russia. President Donald Trump stated that the two sides are “getting very close to a deal,” with only “a few remaining points of disagreement.” He indicated he would meet with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin once the deal is finalized. However, an aide to Putin told reporters that Russia has not yet officially received a revised draft of the proposal. U.S. special envoy Steve Witkoff is scheduled to travel to Moscow next week to meet with Putin.
Investor Michael Burry, famous for predicting the 2008 housing market crash, has turned his attention to artificial intelligence, arguing that the sector is a bubble. Burry has expressed skepticism about the AI trade, highlighting concerns that the massive costs of the industry’s infrastructure expansion have not been justified by returns. In response, Nvidia reportedly shared a private memo with analysts that mentioned Burry by name while rebuking his claims.
Economic uncertainty is also weighing on the U.S. housing market and consumer sentiment. A new report from Redfin revealed that nearly 85,000 sellers took their homes off the market in September, the highest level for that month in eight years. The trend is attributed to weak buyer demand, falling home prices, and general economic anxiety, with about 15% of the delisted homes at risk of selling at a loss. Separately, the Conference Board reported that its Consumer Confidence Index fell in November to its lowest point since April, citing weak employment prospects as a key factor in the decline.
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