Google parent Alphabet (GOOGL) reportedly is in talks with Meta Platforms (META) and others to let them use its Tensor AI chips, expanding its Nvidia (NVDA) rivalry. Google and AI chip partner Broadcom (AVGO) rose slightly Tuesday. Nvidia stock and Advanced Micro Devices (AMD) fell.

Google has traditionally used its customer tensor processing units (TPUs) for iits own data centers, renting them out to customers. But The Information reported late Monday that Google is now offering to sell TPUs for use in customers' own data centers.

Meta Platforms is mulling buying billions of dollars worth of Google's TPUs into its data centers starting in 2027, while renting TPU capacity from Google Cloud as early as 2026. Meta has relied primarily on Nvidia graphic processing units (GPUs) for its AI needs.

It's a potential huge new market for Google and Broadcom, which helped design the Tensor AI chips. It could be significant competition for Nvidia and AMD, threatening significant sales and pricing power.

Google, Broadcom Stock Rise

Google rose 1.5% and Broadcom stock climbed 1.9% on Tuesday, paring initial gains to new highs.

Broadcom stock vaulted 11.1% on Monday to 377.96, back above its 50-day line and an old 363.24 cup-with-handle buy point that investors could use.

Google stock gained 6.3% to 318.58 on Monday to a fresh high after jumping 8.4% last week.

Nvidia, AMD Stock Fall

Nvidia stock fell 2.6% Tuesday but well off morning lows. Shares rose 2.05% to 182.55 on Monday, still below the 50-day line.

AMD tumbled 4.1%, also off session lows. AMD stock jumped 5.5% to 215.05 on Monday, just shy of the 50-day.

Taiwan Semiconductor recovered to close up 4 cents after rising 3.5% Monday to slightly below its 50-day. Taiwan Semiconductor stock makes chips for Nvidia, AMD and Broadcom.

Meta stock popped 3.8%. Shares gained 3.2% on Monday, still well below its 50-day and 200-day lines.

By: DocMemory
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