"Discussions on r/wallstreetbets have intensified around Google's Tensor Processing Units, with traders arguing the chips offer a decisive cost advantage over NVIDIA's GPUs. One widely shared analysis breaks down the competitive landscape in detail. As the Reddit user wrote: "Google's TPUs are 2x cheaper than Nvidia GPUs at scale" and warned that "Nvidia will most likely see margin compression to 60% in the next year or 2" as Google floods the market with lower-priced alternatives."
"Adding fuel, Elon Musk's recent comments about Google have circulated widely on Reddit. In a podcast discussion, Musk stated that Google has "laid the groundwork for an immense amount of value creation from an AI standpoint," grouping Alphabet with NVIDIA as his top AI plays. Overbought but Still Running Despite an RSI of 73.51, well into overbought territory, momentum remains strong. The stock peaked at $328.83 on November 25 before consolidating around $320. Volume spiked to 85M share"
Alphabet shares rose about 31% from roughly $244 to over $320 within a month as retail investor interest intensified across Reddit and X. Traders focused on Google's Tensor Processing Units as a potentially lower-cost alternative to Nvidia GPUs, claiming TPUs may be about 50% cheaper at scale and could compress Nvidia margins. Rumors suggest Meta and xAI are evaluating Google Cloud and TPUs, while Gemini usage exceeded 650 million monthly active users. Elon Musk praised Google's AI groundwork, reinforcing investor enthusiasm. Technicals show an RSI of 73.51 and a recent peak at $328.83 with volume spiking to 85M shares.
Read at 24/7 Wall St.
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