The Analysis For Nvidia (NVDA) Justifying $180

Nvidia (NVDA), said its tech remains a generation ahead of the industry, in response to Wall Street’s concerns that the company’s dominance of AI infrastructure could be threatened by Google’s AI chips.

“We’re delighted by Google’s success — they’ve made great advances in AI and we continue to supply to Google,” Nvidia said in a post on X. “NVIDIA is a generation ahead of the industry — it’s the only platform that runs every AI model and does it everywhere computing is done.”

The post came after Nvidia saw its shares fall 3% on Tuesday after a report that Meta, one of its key customers, could strike a deal with Google to use its tensor processing units for its data centers.

In its post, Nvidia said its chips are more flexible and powerful compared with so-called ASIC chips — such as Google’s TPUs — which are designed for a single company or function. Nvidia’s latest generation of chips are known as Blackwell.

“NVIDIA offers greater performance, versatility, and fungibility than ASICs,” Nvidia said in its post.

Nvidia has more than 90% of the market for artificial intelligence chips with its graphics processors, analysts say, but Google’s in-house chips have gotten increased attention in recent weeks as a viable alternative to the Blackwell chips, which are expensive but powerful.

Unlike Nvidia, Google doesn’t sell its TPU chips to other companies, but it uses them for internal tasks and allows companies to rent them through Google Cloud.

Earlier this month, Google released Gemini 3, a well-reviewed state-of-the-art AI model that was trained on the company’s TPUs, not Nvidia GPUs.

“We are experiencing accelerating demand for both our custom TPUs and Nvidia GPUs,” a Google spokesperson said in a statement. “We are committed to supporting both, as we have for years.”

Nvidia CEO Jensen Huang addressed rising TPU competition on an earnings call earlier this month, noting that Google was a customer for his company’s GPU chips and that Gemini can run on Nvidia’s technology.

He also mentioned that he was in touch with Demis Hassabis, the CEO of Google DeepMind.

Huang said that Hassabis texted him to say that the tech industry theory that using more chips and data will create more powerful AI models — often called “scaling laws” by AI developers — is “intact.” Nvidia says that scaling laws will lead to even more demand for the company’s chips and systems.