Google is apparently shifting strategy to sell its Tensor Processing Units (TPUs) directly to companies like Meta for their on-premise data centers rather than just renting them via Google Cloud.
The market reaction was swift, GOOGL and Broadcom (AVGO) rallied while NVDA and AMD saw some pressure.
To put this into perspective, If hyperscalers (Meta, etc.) successfully transition to owning their own non-Nvidia hardware stacks, the defensive moat for Nvidia will not be as impenetrable as it was in 2023. This transition will take years, not months but the infrastructure landscape is clearly evolving.