This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) remains the dominant force in the AI chip market despite growing interest in Google’s Tensor Processing Units, according to a new note from Wedbush. The firm issued the view after reports that Meta Platforms may spend billions on the Alphabet unit’s AI hardware.
Analysts led by Daniel Ives said Google’s TPU lineup, built with Broadcom, is attracting attention and adding healthy competition to the sector. They noted that the expanding AI market will support multiple chipmakers as trillions of dollars are deployed over the coming years. But they emphasized that Nvidia continues to anchor the industry, driven by demand for its high-performance GPUs and the company’s ability to exceed Street estimates in its latest quarter.
Wedbush said the recent pullback in Nvidia’s shares reflects broader concerns about an AI bubble, geopolitical risk tied to China demand, and investor unease around the broader ecosystem. Those pressures, the firm said, contributed to volatility even after Nvidia reported strong growth and guidance.