This article first appeared on GuruFocus.

Google’s expanding push into custom AI chips is drawing interest across the sector, but Wedbush said the effort is not expected to unsettle Nvidia (NASDAQ:NVDA).

The brokerage commented after reports that Meta (META) is exploring a multi-billion-dollar purchase of Alphabet’s (NASDAQ:GOOGL) Tensor Processing Units, which are built with Broadcom (AVGO). Analysts led by Daniel Ives said Google’s hardware is gaining momentum as more large platforms test alternatives, alongside progress made by AMD (NASDAQ:AMD).

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Wedbush added that several tech companies are positioned to benefit as industrywide AI spending grows into the trillions over the coming years. The firm noted, however, that Nvidia remains at the center of current infrastructure demand and is likely to retain that lead for some time.

The note said recent volatility across major tech names followed Nvidia’s strong quarterly results, which outpaced market expectations but still prompted profit-taking. Wedbush also pointed to ongoing questions around China-related revenue limits and broader investor debate about AI-driven valuations.

Even so, the firm expects tech shares to stabilize into year-end as companies accelerate AI investment heading into 2026.