Nvidia Shares Face Pressure as Meta Explores Google’s AI Chips

Nvidia, the leading global producer of artificial intelligence chips, navigated significant market volatility last week. The turbulence was triggered by reports suggesting Meta, one of Nvidia’s most significant clients, is in discussions to incorporate Google’s custom-designed Tensor Processing Units (TPUs) into its operations. These specialized chips compete directly with Nvidia’s core GPU business.

Investor concern became evident last Tuesday when Nvidia’s stock declined to $177.68, marking a single-day drop of 2.6 percent. The apprehension stemmed from the potential for Google’s custom silicon, particularly in the AI inference segment, to capture market share and challenge Nvidia’s commanding position in the data center sector.

However, the sell-off Read more...