Alphabet’s TPU Push to Meta Fails to Impress Top Analyst Despite Early Stock Gains
Alphabet shares edged higher in early trading after reports surfaced that Google is aggressively marketing its custom Tensor Processing Units (TPUs) to Meta and financial institutions. The tech giant aims to challenge Nvidia's dominance in AI chips, with potential Meta adoption starting as early as 2027.
D.A. Davidson's five-star analyst Gil Luria remains unimpressed, maintaining a Neutral rating on GOOGL with a $300 price target. "This is just one additional data point," Luria noted, suggesting the development fails to alter the fundamental investment thesis.
The potential shift could dent Nvidia's position as Meta's primary AI chip supplier. Nvidia shares showed sensitivity to the news, reflecting market concerns about growing competition in the accelerator space.
