Move Over, NVIDIA. Meta’s Chip Ambitions May Yet to Be Priced Into the Stock

Nvidia (NASDAQ:NVDA | NVDA Price Prediction) has been a huge winner of the AI revolution, but the big question is whether the competition is finally getting a chance to catch up. It seems like every big tech firm with enough money to spend wants to build its own custom silicon, and it makes a lot of sense, especially since how much money is flowing into Nvidia’s pockets for its GPUs. With a likely inference boom on the horizon, perhaps the custom silicon is more of a pressure release than a way to move past Nvidia.

At the end of the day, hyperscalers are making real, massive strides in efficiency with their latest silicon. From Google (whose parent firm is Alphabet (NASDAQ:GOOGL)) TPUs to Meta Platforms‘ (NASDAQ:META) MTIA chips, it looks like AI innovators are about ready to move on.

But, given the magnitude of AI demand and how quickly the appetite for tokens could rise, it feels like there’s more than enough demand to go around, even as new suppliers join the chat. Despite the new options, though, firms, including the hyperscalers making custom silicon themselves, are still using Nvidia GPUs.

But what happens when the hyperscalers bridge the gap and start gravitating more towards their own silicon while potentially selling it to third parties? That’s the big question that might keep Nvidia shareholders up at night. CapEx is blasting off now, but who knows? A pause or pullback in spend could be in the future if a…