If Nvidia disappeared tomorrow, Google would be fine. The same can’t be said for others. Google’s built its own parallel universe to Nvidia’s hardware stack.
That said, I’m not saying Nvidia is obsolete or in danger. Nvidia is still very much in the AI race, and Google won’t stop buying its chips.
Why? Because Google Cloud needs to capture market share. Clients still want torent Nvidia chips for AI compute. If Google Cloud only offered TPUs, clients would leave for AWS or Azure. Google isn’t going to let that happen.
Nvidia’s dominance isn’t going anywhere soon. Companies still want Nvidia chips because they’re still the most powerful AI chips on Earth. Google’s TPUs are designed for cost-efficiency, not raw power. Depending on the task—if you need the absolute fastest training time possible—Nvidia GPUs remain the leader.
Given how rosy investors are on Alphabet now, I think they’ve overreacted. Alphabet at $300 is overvalued—not a price I’d entertain. Nvidia, on the other hand, looks more reasonable after the drop. I won’t say undervalued unless it drops another 10%, but it’s not expensive now.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
