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

Meta Platforms (META) is exploring the use of Google’s (GOOG) Tensor Processing Units (TPUs) in its data centers, a move that could reduce its reliance on NVIDIA’s (NVDA) GPUs [1]. This news drove GOOG’s shares up ~2% in after-hours trading to $327 [1], while NVDA’s shares fell ~2.05% AH [1]. The following day, GOOG closed at $318.47 (up 6.28%), META at $613.05 (up 3.16%), and NVDA at $182.55 (up 2.05%) [0]. GOOG has gained ~29.91% since mid-September, fueled by positive reception of its Gemini3 AI model [0]. Key metrics include GOOG’s $3.84T market cap, META’s $1.55T, and NVDA’s $4.44T [0]. P/E ratios stand at GOOG (31.44), META (27.15), and NVDA (45.19) [0].

The potential shift from NVDA’s GPUs to GOOG’s TPUs highlights growing competition in the AI chip market [0]. For GOOG, this represents a diversification opportunity beyond advertising and search [0]. Meta’s consideration of TPUs suggests cost-saving motives, which could boost its EPS [0]. NVDA’s CUDA ecosystem remains a strong moat, but the risk of losing major clients like Meta warrants attention [0].

• GOOG
  : Opportunity to gain AI chip market share, but risk of production capacity constraints if Meta signs a large deal [0].
• META
  : Opportunity for cost savings on AI infrastructure, but risk of integration challenges with Google’s TPU platform [0].
• NVDA
  : Risk of revenue impact from losing Meta, but opportunity to innovate and retain clients via product enhancements [0].

GOOG’s 29.91% gain since mid-September reflects investor optimism about its AI initiatives [0]. META’s outperformance of its Communication Services sector (3.16% vs. sector’s 0.53%) signals confidence in its cost-saving strategy [0]. NVDA’s recovery from AH losses indicates broader market support, though competition from GOOG’s TPUs remains a long-term risk [0]. Sector performance: Tech up 2.08%, Communication Services up 0.53% [0].