Nvidia Stock Rises 2% Despite Meta's Custom AI Chip Plans

Product / TechAnalyst
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Summary · why it matters

Nvidia shares rose about 2% on Friday afternoon as investors looked past reports that Meta Platforms is advancing development of a new in-house artificial intelligence chip. Reuters said Meta plans to begin manufacturing its custom AI processor, code-named Iris, in September after completing initial testing, with the chip being designed with Broadcom and manufactured by Taiwan Semiconductor Manufacturing. The processor is intended to support Meta's AI infrastructure while complementing, rather than replacing, the large number of graphics processors the company continues to buy from Nvidia and Advanced Micro Devices. Morgan Stanley and TD Cowen reaffirmed bullish ratings on Nvidia, citing sustained demand for AI infrastructure, expanding enterprise adoption, and continued supply constraints expected to support long-term growth.

Impact on stocks 6

Artificial Intelligence▲ · 4 stocks
Meta Platforms Inc.
META
▲ PositiveTechnologyrelevance

Meta is advancing its custom AI chip development, a strategic move for its AI infrastructure.

NVIDIA Corporation
NVDA
▲ PositiveDemandrelevance

Meta's custom chip complements rather than replaces Nvidia GPUs, and analysts reaffirm bullish ratings citing sustained AI demand.

Broadcom Inc
AVGO
▲ PositiveTechnologyrelevance

Broadcom is designing Meta's custom AI chip, a direct business win.

Advanced Micro Devices Inc
AMD
± MixedCompetitionrelevance

Meta's custom chip complements rather than replaces AMD GPUs, but still represents potential future competition.

Semiconductors▲ · 1 stocks
Financials▲ · 1 stocks

Theme Impact 5

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