Schwab Network on $NVDA (Oct 28, 2026)
Google's TPUs are a very small NVDA competitor, far from big competition, but NVDA's 90% market share came with 75% margins attractive enough for a cheaper entrant like Google to take a piece; as an NVDA shareholder the speaker is uneasy about that entry, holds both companies and picks no winner.
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There is certainly a lot of excitement about the Tensioner Processing Units (TPUs) they are developing. It doesn't just reduce their costs. This is essentially their version of Nvidia chips, which I believe they made first.
And I'll tell you, it's a very small number in terms of TPUs compared to Nvidia. But, as an Nvidia shareholder, I'm not thrilled that Google is chasing Nvidia here, are I? It's a very small competitor.
It's far from being a big competition, but Nvidia's 90% market share was with profit margins of 75%. Those 75% margins are very attractive for any competitor to come in and say, "I'm going to take a piece of that."
I can do it cheaper. And Google can do it cheaper.
So, I own shares in both companies, we'll see who wins, but I think for Nvidia shareholders, it's a little uncomfortable to see someone else enter the market.
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