Overview
- Nvidia shares fell about 5.7% at the open, after The Information reported Meta is in talks to purchase Google’s TPU chips for use in 2027 and may rent capacity from Google Cloud, signaling potential diversification away from Nvidia GPUs.
- Alphabet gained in early trading and approached a $4 trillion valuation, building on a Monday rally tied to Gemini 3 updates and strength across its TPU ecosystem.
- AI- and tech-linked names showed mixed signals this week: the AIQ ETF rose 3.17% Monday, with Broadcom up 11.10%, Micron 7.99% and AMD 5.53%, even as subsequent trading saw pressure on some chip stocks.
- Nvidia recently reported a standout quarter with revenue up 62% year over year, as CEO Jensen Huang dismissed claims of an AI bubble during the company’s earnings call.
- Investor caution has intensified after Michael Burry accused major tech firms of understating depreciation to inflate earnings and after analysts warned that AI data centers could be unprofitable when depreciation and circular financing are factored in.