Marina Lyubimova
⬤ Nvidia faces new pressure after news that Meta Platforms could shift part of its AI-chip orders to Google. The tech giant's search for other suppliers threatens Nvidia's market dominance - first estimates say the move could erase roughly $180 billion from Nvidia's market value. The stock price hinges on keeping its largest customers.
⬤ The situation stands out because Nvidia supplies the hardware that powers the AI boom - nearly every major tech firm buys its GPUs. Meta's readiness to test Google's chips shows that rivalry is intensifying as Google keeps sharpening its TPU platform. If one of the world's biggest AI spenders changes direction, Nvidia's order book could suffer. Investors responded at once, re evaluating what the change implies for Nvidia's near term outlook.
Any reallocation of that spending has the potential to shift expectations for Nvidia's revenue trajectory.
⬤ Meta's interest in Google chips reflects a wider trend - large AI firms want multiple suppliers rather than one. Google's TPU upgrades and its drive for enterprise AI partnerships give it stronger standing against Nvidia. Meta intends to pour tens of billions into AI hardware in the next few years - the destination of that cash carries weight for the whole sector. Even a partial switch would alter revenue forecasts across the industry.
⬤ The episode highlights rising competitive threats in AI semiconductors. Nvidia's steep valuation rests on the belief that hyperscalers will keep buying GPUs in bulk. The mere fact that Meta is weighing alternatives exposes the risk that rivals will field their own chips. Nvidia's ability to retain market share will probably steer investor mood as AI infrastructure construction proceeds.
Marina Lyubimova
