Nvidia and AMD Stocks Dip on Google Chip Concerns, But Analyst Sees Long-Term Opportunity
Nvidia and AMD shares fell 6% and 8% respectively amid reports that Meta may shift to Google's custom Tensor Processing Units (TPUs) for data centers by 2027. The potential MOVE raises competitive concerns for GPU suppliers in the AI hardware space.
Bank of America's top-rated analyst Vivek Arya maintains a Buy rating on both stocks, viewing the selloff as overdone. With a 59% success rate and 17.4% average return across recommendations, Arya sees the AI accelerator market supporting long-term growth despite emerging competition.
The reported Meta-Google discussions highlight the intensifying race in AI infrastructure. While posing a theoretical threat to Nvidia and AMD's pricing power, industry observers note the TPU technology remains unproven at scale compared to established GPU solutions.
