On Tuesday, a sharp dip in Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc. (NASDAQ:AMD) sparked unexpected pushback from Google DeepMind researcher arguing the market still doesn't grasp the reality of exploding demand for AI hardware.
DeepMind Researcher Says Wall Street Misread AI Hardware Demand
Nvidia fell 2.59% to close at $177.82 on Tuesday, while AMD slid 4.15% to $206.13. In the after hours trading, the Jensen Huang-led tech giant dropped another 0.52% while its rival decreased by 1.04%, according to Benzinga Pro.
The drop followed reports that Meta Platforms Inc. (NASDAQ:META) may tap Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google's AI chips for its data centers.
The report suggested that Google is ramping up its push to go head-to-head with Nvidia in the AI chip space. Its tensor processing units, or TPUs, are built to deliver optimized performance and cost efficiency across AI workloads, from training to inference.
That market's reaction drew a rebuke from a Google DeepMind researcher Amit Yazdan on X. The researcher who works on TPU design said, "The selloff shows how clueless the market is about hardware and the demand."
See Also: Eddie Wu Doesn’t See An AI Bubble For The Next 3 Years: Alibaba CEO Doesn’t ‘See Much Of An Issue’
Nvidia Plays Diplomat — And Then Flexes
The selloff came just after Nvidia publicly congratulated Google on its AI progress while also reinforcing its own lead. In a social media post, the company said it was "delighted" to see Google's success and noted it continues to supply the search giant with GPUs.
Nvidia then underscored its competitive edge, saying it remains "a generation ahead" of rivals and is the only platform capable of running every major AI model wherever computing happens.
Meanwhile, Jim Cramer said Broadcom Inc. (NASDAQ:AVGO) is likely to benefit the most from a potential Google–Meta AI chip deal, pointing to CEO Hock Tan's position on Meta's board and noting that Meta would most likely contract with Broadcom.
Benzinga’s Edge Stock Rankings show that GOOGL continues to exhibit a robust price trend across short, mid and long-term timeframes. Click here to compare its performance with industry peers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
