By Keithen Drury
Publication Date: 2025-12-01 11:45:00
Changes may be coming in the artificial intelligence chip space.
Nvidia (NVDA 1.81%) has been at the top of the artificial intelligence (AI) investing hierarchy since 2023. However, there could be a significant shift occurring.
Up until a few days ago, it appeared that there were only a handful of options for AI hyperscalers to choose from when outfitting their data centers with parallel processors. Nvidia’s graphics processing units (GPUs) have been by far the most popular choice, and AMD‘s GPUs have also captured a sliver of the market. Another option that the largest data center operators have pursued was to partner with Broadcom (AVGO +1.36%) to develop custom AI accelerators — called application-specific integrated circuits — that are optimized for a particular type of workload.
However, news broke recently that Alphabet (GOOG 0.05%) (GOOGL +0.07%) may sign a deal to sell a large quantity of its tensor processing units (TPUs) that it collaborated with Broadcom to design to Meta Platforms. Such an agreement could herald the arrival of a new competitor to the computing hardware market, which is why purchasing these three stocks now may make more sense than adding shares of Nvidia.
Image source: Getty Images.
Three companies are set to benefit
The news articles regarding the possibility that Meta will buy TPUs from Alphabet recognize that it is just that: a possibility. The companies have not made a firm public comment on the matter, nor has a clear dollar figure…
