On July 30th local time, the U.S. stock market experienced another round of volatility, during which NVIDIA's stock price suffered a significant setback, with its market value evaporating by approximately $193.4 billion (about 1402.4 billion yuan) overnight, setting a new closing low since the end of May.

This event has attracted widespread market attention and has had a significant impact on the entire technology sector.

This article will delve into the reasons behind NVIDIA's stock price plunge, the market's reaction, and future prospects.

I.

Market Background and Event Trigger Recently, global technology stocks have undergone varying degrees of adjustments, especially in the field of Artificial Intelligence (AI).

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As market competition intensifies and the pace of technological iteration accelerates, major tech giants have increased their investment in AI research and development.

Against this backdrop, NVIDIA, as a leader in the GPU market, has always been under the spotlight for its stock performance.

On July 30th, Apple Inc. released a technical paper revealing that the AI model behind its latest artificial intelligence system, Apple Intelligence, was trained on Google-designed Tensor Processing Units (TPUs).

This news quickly fermented in the market and became a key factor triggering a significant drop in NVIDIA's stock price.

II.

The Significance of Apple's Choice of Google TPU Apple's choice of Google TPU over NVIDIA GPU for model training sends an important signal: that large technology companies are seeking alternative solutions to reduce their dependence on a single supplier, possibly to improve efficiency and reduce costs.

Google's TPU, as a processor optimized specifically for machine learning tasks, has shown the ability to compete with NVIDIA GPUs in certain aspects.

Apple's decision to use Google TPU highlights this point and suggests that the competitive landscape of the future AI hardware market will change.

As one of the world's largest technology companies, Apple's development in the field of AI is closely watched, and its choice of Google TPU over NVIDIA GPU for model training has far-reaching implications for the entire industry.

This move by Apple has triggered market concerns about NVIDIA's future growth potential.

Investors may worry that other tech giants will follow Apple's lead and adopt hardware from Google or other suppliers, which would erode NVIDIA's share in the AI training market.

Additionally, this change could also affect NVIDIA's future revenue forecasts and profit expectations.

III.

Market Concerns about NVIDIA's Future Growth Potential Apple's move has sparked market concerns about NVIDIA's future growth potential.

Investors may worry that other tech giants will follow Apple's lead and adopt hardware from Google or other suppliers, which would erode NVIDIA's share in the AI training market.

Moreover, this change could also impact NVIDIA's future revenue forecasts and profit expectations.

IV.

Challenges and Opportunities Faced by NVIDIA Despite facing pressure from competitors, NVIDIA remains one of the leaders in the AI hardware market, and its technology and product lines still have strong competitiveness.

NVIDIA's leading position in the GPU field is not easily shaken, and its GPUs are not only suitable for machine learning training but also have a wide range of applications in gaming, high-performance computing, and other fields.

For NVIDIA, this stock price correction also provides an opportunity to reassess its market positioning.

The company can respond to challenges by strengthening technological innovation and expanding into new application areas.

As AI technology continues to advance, NVIDIA can also explore opportunities for cooperation with other tech giants to jointly promote the development of the industry.

V. The Rise of Google Cloud Services Apple's choice of Google TPU for model training further strengthens Google Cloud's competitiveness in the AI training field.

Google Cloud Platform provides customers with an alternative to NVIDIA hardware by offering access to TPUs.

This strategy not only helps Google Cloud attract more customers but also encourages more companies to consider adopting Google's solutions, thereby exerting greater competitive pressure on NVIDIA.

The rise of Google Cloud services indicates that the integration of cloud computing and AI technology is accelerating, bringing new development opportunities for the entire industry.

For NVIDIA, how to maintain its leading position in the GPU market while better integrating into the cloud computing ecosystem will be a key focus for the future.

VI.

Industry Trends and Outlook From a broader perspective, NVIDIA's stock price fluctuations are a microcosm of the rapid changes in the current technology industry.

As AI technology continues to evolve, more and more companies are beginning to focus on building AI capabilities, which also increases the demand for related hardware and software.

In this context, NVIDIA, as a leader in the AI hardware field, still has a promising future.

We should also note that as technology advances and the market changes, the competitive landscape is constantly evolving.

In addition to Google TPU, there are many emerging AI chip suppliers on the market, such as Huawei HiSilicon and Cambricon.

The rise of these new forces also brings new challenges to NVIDIA.

In the face of such a competitive environment, NVIDIA needs to continuously innovate, strengthen cooperation with upstream and downstream enterprises in the industry chain, to ensure its leading position in the AI hardware field.

VII.

Perspective for Long-Term Investors For long-term investors, NVIDIA's stock price correction provides an opportunity to reassess investment opportunities.

Although NVIDIA faces certain market pressures in the short term, in the long run, with its deep accumulation and technological advantages in the GPU field, the company has the ability to overcome current challenges and continue to lead the development of the AI hardware market.

With the application and popularization of new technologies such as 5G and the Internet of Things, NVIDIA's layout in fields such as edge computing and autonomous driving will also bring new growth momentum.

VIII.

In Conclusion The significant drop in NVIDIA's stock price reflects the market's concerns about Apple's choice of Google TPU over NVIDIA GPU, with concerns mainly focusing on potential market share loss, uncertainty about future growth potential, and intensifying competition.

However, it should be noted that NVIDIA remains one of the leaders in the AI hardware market, and its technology and product lines still have strong competitiveness.

For long-term investors, this stock price correction may also be seen as an opportunity to reassess investment opportunities.

Although NVIDIA faces certain market pressures in the short term, in the long run, with its deep accumulation and technological advantages in the GPU field, the company has the ability to overcome current challenges and continue to lead the development of the AI hardware market.

For the entire technology industry, this event also reminds us that technological progress and market changes are always full of uncertainty, and only companies that continuously innovate and adapt to changes can succeed in the long term.