By Justin Pope
Publication Date: 2025-12-18 17:00:00
Key Points
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Nvidia continues to grow rapidly, thanks to its leadership in artificial intelligence (AI) data center chips.
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Alphabet has a full AI stack, and could now add its TPU chips to the equation.
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Both look like long-term winners, though the better buy could depend on the investor.
- 10 stocks we like better than Nvidia ›
The stock market is witnessing a technological arms race playing out in real time. Companies are racing to build the data centers and other infrastructure to support artificial intelligence (AI), which experts believe could create trillions of dollars in economic value over the coming decades.
Inside these data centers are massive clusters of chips, which work together to train and operate AI models. The AI chip conversation begins with Nvidia (NASDAQ: NVDA), the company that has dominated this market from the jump.
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However, tech giant Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) has emerged as a potential competitor after successfully training its AI models with custom-built TPU chips it designed in-house.
Which AI chip stock is the better buy heading into 2026?
Image source: Nvidia.
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