Analysis of Meta's Potential Google TPU Adoption and Impact on GOOG, NVDA, META

Meta Platforms is considering deploying Google’s Tensor Processing Units (TPUs) in its data centers, a move that could challenge NVIDIA’s dominance in AI chips [1]. GOOG shares rose ~2% in after-hours trading to $327, while NVDA fell ~2.05% [1]. GOOG has rallied ~52% since mid-September, fueled by positive reception of its Gemini 3 AI model [0]. Market cap data shows NVDA remains the larger company ($4.44T vs GOOG’s $3.84T), contradicting claims of GOOG surpassing NVDA by year-end [0].

The potential deal signals intensifying competition in the AI chip space, with Google emerging as a credible alternative to NVIDIA [2]. Meta’s adoption of TPUs could lead to significant cost savings, boosting its profitability [1]. GOOG’s momentum reflects growing investor confidence in its AI infrastructure, but the deal’s long-term impact on NVDA (which derives 88.3% of revenue from data centers) remains uncertain [0].

: The Meta-Google talks are not finalized, so benefits to GOOG and META may not materialize [2]. Reddit discussions highlight FOMO among users, which could lead to impulsive investments [1]. Unsupported claims about GOOG’s market cap surpassing NVDA need verification [0].
: Google could gain market share in the enterprise AI chip market [2]. Meta may reduce its AI infrastructure costs [1].

GOOG’s after-hours gain reflects positive sentiment around its AI chip offerings. NVDA’s short-term drop is offset by its dominant market position. Meta’s potential shift to TPUs underscores the evolving AI infrastructure landscape. Investors should consider deal uncertainty and verify claims before making decisions.