💥 BREAKING UPDATE:
$NVDA just slid 3.5% after reports that Meta may shift its data center chips to Google’s TPUs by 2027. Alphabet is already reacting — $GOOGL up 3.5% in premarket, while Nvidia feels the pressure.
Most traders only see a dip.
Macro analysts? They see a macro shift.
If hyperscalers like Meta are preparing to pivot away from Nvidia’s architecture, it’s a clear signal: the era of “buy Nvidia at any price” is ending. We’re moving from the Infrastructure Arms Race to the Cost Optimization Era — the phase where efficiency beats hype.
And here’s the math reality:
Nvidia’s massive 75% gross margins won’t hold if its biggest customers start building or adopting alternative solutions in-house. Vertical integration always compresses supplier margins — and this time, the suppliers are Nvidia.
The game is changing.
Watch the ripple effects.
