Nvidia chips are delayed but Meta is making their own — rotate into software
Nvidia's new AI chips are facing severe delays due to hardware problems, and Asian markets are tumbling on fears of a slowing tech boom. Meanwhile, Meta just proved that big tech companies can successfully build their own custom AI chips, avoiding Nvidia's delays and lowering their costs. Investors should rotate away from traditional hardware makers and into big tech software companies like Meta.
Idea
Nvidia just delayed its next AI system to 2028 due to circuit board problems, adding fuel to a brutal chip sector sell-off and driving Asian rotation away from chipmakers. At the exact same time, Meta launched a new AI model and reached a massive custom-chip milestone, easing investor fears about their infrastructure spending. This creates a perfect divergence: the hardware providers are crippled by production issues while the software giants are figuring out how to do AI more efficiently on their own terms. When the hardware layer breaks, the software layer becomes the safer, more profitable bet.
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News sources
- Meta's stock rebounds as agentic AI coding and custom chips ease spending fears — MarketWatch
- Bank of Japan may speed up rate hikes, pushing borrowing costs above 2%, ex-BOJ official warns — CoinDesk
- A Circuit Board Problem Just Delayed Nvidia's Next AI System to 2028 And Chip Stocks Are Already Feeling the Fallout — Yahoo Finance