Google TPUs could gain share from Nvidia turmoil, Bloomberg Intelligence says, eyeing $50B

The Huang uncertainty is turning Nvidia’s reliance on a single leader into a selling point for its rivals. Alphabet and AMD are the clearest beneficiaries, at least in sentiment. Any sign that customers are actually moving spending, rather than just talking about it, would matter for the AI hardware supply chain, including Asian suppliers whose fortunes are tied closely to Nvidia’s volumes. A diversification story also supports the case for Google Cloud’s growth multiple. For now, though, the trade is driven by headlines, and a clean leadership outcome or strong results from Nvidia on November 17 could quickly reverse the relative moves.-- Nvidia’s crisis at the top gives Google a rare opening to pitch its cheaper AI chips, but CUDA lock-in means any shift in spending would take years, not days.Summary:Bloomberg Intelligence says Google’s TPUs could gain share if Nvidia’s leadership uncertainty pushes customers to diversify toward lower-priced chipsA wider rollout of Google’s 8tx and 8i Max chips would extend its reach across AI training and inferenceHyperscalers and frontier AI labs could lean more heavily on non-Nvidia chips as a resultTPU systems were a meaningful contributor to Google Cloud in the third quarter, and TPU sales are seen ramping to more than $50 billion in 2027The note follows a WSJ report that Nvidia’s board is preparing to oust CEO Jensen Huang, which sent Nvidia shares down more than 10% after hours Google’s tensor processing units could pick up market share if the turmoil around Nvidia’s leadership encourages AI customers to spread their spending across more chip suppliers, according to Bloomberg Intelligence. The research arm said a wider rollout of Google’s expanded TPU lineup could lead hyperscalers and frontier AI labs to lean more heavily on non-Nvidia chips. It expects TPU sales to ramp to more than $50 billion in 2027.The note comes as Nvidia faces the most serious leadership uncertainty in its history. The Wall Street Journal reported on Wednesday that the company’s board is preparing to oust chief executive Jensen Huang. That followed a New York Times report of a relationship with an executive who reports to him, on top of an existing board investigation into his ties to a businesswoman whom US officials identified as a Chinese intelligence asset. Nvidia shares fell more than 10% in after-hours trading, while rival chipmaker AMD rose.Bloomberg Intelligence’s argument rests on price and timing. TPUs are typically cheaper than Nvidia’s graphics processors, and customers worried about their supply relationships or the continuity of Nvidia’s product plans may see this as a moment to diversify. A broader rollout of Google’s newer chips, which the research arm identified as the 8tx and 8i Max, would extend Google’s reach across both training, where AI models are built, and inference, where they are run for users.The financial stakes are significant for Alphabet. TPU systems were already a meaningful contributor to Google Cloud sales in the third quarter, the research arm said, and faster adoption would support further growth in the division.There are limits to the argument. Nvidia’s lead rests on more than its chief executive. Its CUDA software platform, which most AI developers are trained on, makes switching costly. Large AI buyers also plan their chip purchases years ahead, so any shift in spending would likely be gradual rather than sudden. And leadership uncertainty does not change Nvidia’s products overnight.The next test comes quickly. Nvidia reports third-quarter results on November 17, and any comment on customer demand, the board’s review or succession will show whether the uncertainty is affecting orders. For Google, the question is whether it can turn interest in TPUs into firm commitments while its biggest rival is distracted.  This article was written by Eamonn Sheridan at investinglive.com.