Nvidia (NVDA.US) shares in US pre-market loss almost 4% amid possible Meta may shift part of its future AI chip strategy to Google, considering Google’s TPUs for its data centers starting in 2027 — a potential long-term hit to Nvidia demand. The situation adds to the broader debate over stretched tech valuations and a possible “AI bubble,” with Nvidia at the center of that discussion. Futures on US indices are almost flat because strong Alphabet (GOOGL.US) performance balances weak sentiments on Nvidia.
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Meta could also rent Google TPUs as early as next year, signaling an interest in diversifying away from Nvidia’s GPUs sooner than expected.
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Nvidia shares fell is showing investor sensitivity to any signs of weakening dominance or customer diversification.
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Alphabet shares rose over 4%, boosted by expectations that TPU adoption could strengthen Google’s cloud and AI hardware ecosystem.
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Google’s TPUs, co-designed with Broadcom, are gaining credibility; Broadcom shares also rose following the news.
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AI infrastructure builders want diversified chip suppliers, reducing dependence on Nvidia due to shortages, pricing, and supply limitations.
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Nvidia remains the clear market leader, but Google’s custom silicon represents growing competitive pressure in the AI semiconductor market.
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Meta is one of the world’s largest AI spenders, with projected capex of $70–72 billion this year — making any supplier shift meaningful to the semiconductor landscape.
Looking on NVDA.US stock chart, we can see that shares are still below EMA50 resistance zone, while the head and shoulders bearish formation is potentially forming. Dropping below 160 USD level may signal more stress for the NVDA stock. Wall Street estimates that Meta Platform's shifting from NVDA to Google may take from the table even $180 billion orders worth from Nvidia in the long term.
Source: xStation5
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Morning wrap (25.11.2025)
📈 US100 gains 2.1%
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