Meta's Potential Google TPU Adoption: Impact on GOOG, META, and NVDA Stock Performance

Meta Platforms (META) is negotiating to use Google’s (GOOG) AI chips (TPUs) in its data centers, a move that could reshape the AI chip landscape [1][2]. GOOG’s after-hours trading rose 6.28% to $318.47, extending its 6-month rally of 85.91% [4][5]. META gained 3.16% to $613.05, reflecting optimism about cost savings from reduced NVDA GPU reliance [4]. Contrary to initial claims, NVIDIA (NVDA) rose 2.05% to $182.55, indicating market perception of AI chip sector growth over zero-sum competition [4]. Yahoo Finance HK reports Meta is negotiating a multi-billion dollar TPU order starting in 2027, plus rental capacity from 2026 [3]. This could create a new revenue stream for GOOG’s cloud/AI chip division and boost Meta’s profitability [0]. NVDA remains dominant with a $4.44T market cap vs GOOG’s $3.84T, so long-term impact depends on adoption scale [4].

1. GOOG’s 6-month rally (85.91%) underscores growing investor confidence in its AI chip and cloud offerings [5].
2. Meta’s potential TPU adoption highlights a shift toward cost optimization in AI infrastructure, benefiting both GOOG and META [0][3].
3. NVDA’s positive after-hours performance suggests market sentiment views AI chip competition as a sign of sector expansion rather than a threat [4].
4. Higher trading volumes (GOOG:54.45M vs avg 24M) indicate increased investor interest, possibly driven by FOMO [4].

• Deal Execution
  : Meta’s TPU deal is in negotiation stages—failure to finalize could reverse GOOG’s recent gains [1][2].
• Volatility
  : GOOG’s rapid rally may lead to short-term volatility or pullbacks [5].
• Market Share
  : NVDA could face market share loss if more customers adopt alternative AI chips [0].

• Revenue Growth
  : GOOG stands to gain a multi-billion dollar revenue stream from Meta’s TPU order [3].
• Cost Savings
  : Meta’s TPU adoption could reduce GPU costs, boosting profitability [0].
• Sector Expansion
  : AI chip market growth benefits all players, including NVDA, in the long term [4].

This summary provides objective data for decision-making without prescriptive recommendations.