Alphabet's (GOOG) Ironwood TPUs will weaken Nvidia's (NVDA) moat as a strong competitor, they will take lots of potential revenue and their profit margins will shrink. I expect them to have strong short term performance although from a long term perspective I am bearish on this stock. It has an extremely high P/E ratio of around 42. Even though this might seem like a good investment with extraordinary growth it is an extremely hot stock which is being followed by many analysts making it difficult to get a leg up.
The company uses circular financing which is a type of accounting fraud in this case since it makes the company's sales and earnings growth look bloated. This is a very similar case to Enron in 2001 when it went through bankruptcy shortly thereafter; I'm not saying that it will go bankrupt but I am saying that it may have legal troubles and a slow on revenue growth since this is extremely unsustainable.
The chances of an AI bubble right now might be unrealistic right now although it is extremely likely in the next 2-3 years. This will impact the AI industry as a huge macroeconomic issue which will decrease the demand for the company. If this does happen the value of Nvidia may halve and keep on going down from there.
So my conclusion is that this is an extremely hot stock which many buy because of FOMO. It won't keep growing its revenues and earnings at this pace. It's circular financing deals is accounting fraud which makes the company look more attractive and fakes high revenue growth.
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