Google has launched its latest AI model, Gemini 3, whose capabilities have drawn significant industry attention and reinforced the perception that the company is now a leader in AI.
Financial writer Dee Hsiang expressed on Facebook that Gemini 3 has sparked concerns among investors that it might overshadow other AI models, potentially reducing the demand for Nvidia's GPUs and affecting related supply chains.
Reports indicate that Meta is considering spending billions to acquire Google's TPU, further boosting Google's stock value.
Despite these concerns, Hsiang believes there is no need to worry.
He pointed to the release of the Chinese AI model DeepSeek in February 2025 as a similar example of an incident that raised market concerns about a decline in AI chip demand and a shift in focus from hardware to software firms. DeepSeek was developed with minimal hardware resources, but still rivaled existing top AI models.
"The question arises, did DeepSeek really affect AI hardware demand? The answer is apparent," says Hsiang.
Gemini 3's vast training resources make it challenging for other models to catch up, making it more suitable for AI training.
However, he advises not to be concerned about the lead of a particular AI model, as previously seen with DeepSeek and OpenAI. Such leads typically reverse within months.
Hsiang mentioned that the relevant companies have already increased their demand for TPUs and other customized chips - known as ASICs - because they cannot rely solely on Nvidia GPUs. NVIDIA itself has recognized the rising demand for such chips, recently highlighting the strengths of its own ecosystem.
This represents a complementary rather than purely competitive relationship between Nvidia and ASIC suppliers, potentially benefiting the sustained growth in AI demand and creating new opportunities.
Hsiang noted the recent steep declines in U.S. and Taiwan stocks but remains optimistic about prospects. He plans to strategically invest at opportune moments, analyzing valuations, market trends, sentiment, and capital developments.
He emphasized the importance of maintaining a rational approach to seize opportunities, a skill crucial for longevity in investing, suggesting that recent experiences have provided substantial learning for investors who should now closely monitor how the market establishes a bottom.
