By Keithen Drury
Publication Date: 2026-02-21 18:42:00
Alphabet and Nvidia are competing in processing units.
Nvidia (NVDA +0.94%) and Alphabet (GOOG +3.66%) (GOOGL +3.95%) are two giants competing in the artificial intelligence build-out. For the most part, these two don’t compete against each other, and Alphabet is primarily a client of Nvidia’s. However, Alphabet has also built a graphics processing unit (GPU) alternative that competes with Nvidia’s product, although it’s serving a specific niche.
Of these two, which one is the better AI stock to buy now?
Image source: Getty Images.
Alphabet’s TPU is starting to challenge Nvidia’s GPU
Nvidia makes graphics processing units (GPUs), which have long been the go-to choice for computing problems that require massive horsepower. GPUs can process multiple calculations in parallel, making them a great option for arduous workloads like AI. GPUs are also great for other computing tasks, like cryptocurrency mining, drug discovery, engineering simulations, and their original use case, gaming graphics. However, when a GPU is only utilized for one specific workload for its entire life, the extra capacities that clients have to pay for are somewhat wasted.
Today’s Change
(0.94%) $1.77
Current Price
$189.67
Key Data Points
Market Cap
$4.6T
Day’s Range
$185.95 – $190.33
52wk Range
$86.62 – $212.19
Volume
5.8M
Avg Vol
174M
Gross Margin
70.05%
Dividend Yield
0.02%
That’s where a specialized unit like the Tensor Processing Unit (TPU) from Alphabet comes in.
Alphabet has spent the past decade developing the…
