Meta’s Potential Shift from Nvidia Chips Sparks Market Attention

Nvidia shares concluded the trading week with a modest decline of 0.56%, settling at €156.66. This cautious sentiment among investors followed reports that Meta Platforms is in discussions to utilize Google's Tensor Processing Units (TPUs) for its artificial intelligence workloads. Such a move would represent a significant strategic pivot for the social media giant, which has historically relied almost exclusively on Nvidia's hardware for its advanced computing needs.

The potential negotiations between Meta and Google, reported late in the week, highlight a growing trend among major technology firms. As one of the largest purchasers of Nvidia's Hopper and Blackwell GPUs, Meta's exploration of alternatives is more than a symbolic gesture. It underscores a deliberate effort by hyperscalers to diversify their supply chains and reduce dependency on any single vendor.

This development could eventually exert pressure on Nvidia's pricing power and its substantial market share. With these tech giants now spending tens of billions of dollars quarterly on AI infrastructure, the pursuit of more cost-efficient solutions has become a major financial imperative.

Nvidia's Robust Fundamentals Provide a Counterbalance

Despite the emerging competitive narrative, Nvidia's underlying business performance remains formidable. For the third quarter of its fiscal year 2026, the company reported revenue of $57 billion, marking a 62% increase from the prior year. Its data center segment alone contributed $51.2 billion to this total.

Should investors sell immediately? Or is it worth buying Nvidia?

CEO Jensen Huang provided further reassurance, noting that the company's next-generation Blackwell chip architecture is already sold out for the coming quarters. Demand continues to outpace supply, and Nvidia's proprietary CUDA software ecosystem remains a critical and durable competitive moat that rivals have so far been unable to replicate at scale.

Key Levels and Future Catalysts to Watch

Market technicians are now eyeing the $180 mark (approximately €157) as a crucial level of support for Nvidia's stock. A sustained break below this point could trigger a phase of further consolidation. The market's focus will be split between Meta's progress in formalizing any agreement with Google and the speed at which Nvidia can ramp up production of its Blackwell processors.

Looking ahead, Nvidia's management has set a revenue target of approximately $65 billion for the current fourth quarter, which ends in January 2026. Successful execution on its delivery schedule would likely alleviate concerns about any erosion of its market dominance. In the interim, the equity is expected to remain sensitive to news flow as investors assess the evolving and increasingly competitive semiconductor landscape.