"Investors are reassessing their assumptions. The belief that one dominant supplier can dictate the pace, pricing and direction of the entire sector no longer holds. Capital is responding to genuine competition."
"The Meta-Google move signals a broader trend: hyperscalers want more control over their own AI infrastructure. The era of relying on a single provider for the most expensive, most strategically sensitive hardware is fading. Investors recognise what that means."
"When platforms diversify their chip supply, it forces every participant in the AI ecosystem to compete on efficiency, not narrative. This is the pressure the sector needs. It pushes innovation harder, contains excessive pricing power, and ultimately delivers a healthier investment environment,"
"The boom created an expectation that every company with AI exposure would grow at the same rate. That was never realistic and markets are now stripping out the excess. It strengthens the sector because only firms with genuine economic advantage can justify premium valuations."
Nvidia shares fell after reports that Meta will use Google AI chips, triggering investor reassessment of the idea that one supplier could carry the entire AI sector. Capital is moving in response to genuine competition, ending assumptions that a dominant provider can dictate pace, pricing and direction. Hyperscalers are seeking more control over AI infrastructure and diversifying chip supply. Supply diversification forces competition on efficiency, curbs excessive pricing power, pushes innovation, and restores discipline to valuations. The prior AI surge created unrealistic expectations of uniform growth; markets are now correcting by rewarding real economic advantages.
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